The antitrust watchdog has fined Heron Portico Sh6.1 million fine for buying Zehneria Hotel without notifying the authority.
Competition Authority of Kenya said that the 3 percent penalty on turnover was no punitive given that the deal was good for the market as it rescued a failing operator.
Director Wangombe Kariuki said that while the deal would yield a combined turnover of less than Sh1 billion thus making it qualify for exemption it was still a merger and authorities had to be informed.
CAK said it learned of the deal through the media after Heron Portico Hotel which is located along Milimani road today announced the acquisition of Zehneria Hotel.
This venture is taken up by Sarova Hotels and Resorts in a bid to increase their market share in Kenya’s hospitality industry.
Rebranding to Zehneria Portico, the 3-star hotel in Westlands joins over 70 hotels in 48 destinations under the international hotel management company. Heron Portico fined for secret acquisition