CFTC Slaps K51m Penalty on 7 Firms: Compliance Costs Rise for Malawi Business

Key Business Points

• CFTC fined seven firms K51.5 million for anti‑competitive practices, including expired stock and misleading prices.
• The new Competition Act (effective July 1 2024) raises penalties to 10 % of turnover, but enforcement gaps limit product seizures.
• Two mergers cleared—TNM plc‑Open Connect and Victoria Forex Bureau‑Libertas—show market confidence while consumer refunds highlight ongoing vigilance.

The Competition and Fair Trading Commission (CFTC) imposed a fine of K51.5 million on seven companies for behavior and unfair trading. The penalties followed determinations at its 76th meeting on September 30 2026, covering 64 breaches under the updated Competition and Fair Trading Act.

Tutlas Limited and Kachi Supermarket were fined K25 million and K12.5 million for selling expired products in Salima and Lilongwe. Jegaf Investments and Horizon Health Malawi Limited received K10 million and K2 million penalties for unconscionable conduct. Sanam Supermarket was fined K1 million for expired stock, Jahabi Enterprises K500 000 for misleading conduct and missing price tags, and Spectrum Supplies K500 000 for misleading trade practices under the Trade of Goods Act.

CFTC gave Sanam Supermarket a lighter fine because it apologised and cooperated. Two cases were referred to the Anti‑Corruption Bureau after bribery attempts were uncovered during inspections at Tutlas Limited and Kachi Supermarket. Additionally, two firms were ordered to refund consumers K1 million.

Two local mergers were cleared. TNM plc bought Open Connect Limited and Victoria Forex Bureau took over Libertas General Insurance, showing confidence in Malawi’s telecom and finance sectors.

Desmond Kaunda, CFTC’s CEO, said weak regulation hampers enforcement. Officers cannot impound expired goods; they can only order removal elsewhere, creating a loophole for retailers to restock after inspectors leave. “We need authority to secure products so they cannot be returned,” he added.

John Kapito, Consumers Association executive director, called the situation “unfortunate” and said the issue is institutional design, not individual traders. He urged stronger legal frameworks for effective oversight.

CFTC said 60 percent of its determinations under the law face court challenges, calling for clearer guidance. The Competition and Fair Trading Act, enacted July 1 2024, raises penalties to 10 percent of annual turnover, broadens oversight to digital trade, and strengthens consumer protection to foster a fairer market.

These actions demonstrate the government’s push to tighten market regulations while encouraging legitimate investment. Business owners should review compliance procedures, ensure proper price displays, and avoid stocking expired items. Investors watching Malawi’s growth will find the merger approvals and updated legal framework attractive, but they must stay alert to enforcement expectations.

Local entrepreneurs can use the updated rules as a roadmap for sustainable growth. The focus on digital trade means online sellers must now follow the same standards as physical stores, reducing unfair competition. Small businesses should train staff on clear pricing and product safety to avoid heavy fines. The CFTC offers guidance sessions for new entrants, providing valuable support. As the market matures, savvy consumers reward honest firms with loyalty, encouraging a culture of integrity across Malawi’s economy.

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