Nairobi, Dec. 3 -- Directline Assurance Company has been penalised Sh85 million for abusing buyer power by delaying payments to two garages it had contracted to repair damaged vehicles.

The Competition Authority of Kenya (CAK) imposed the fine on the insurer after finding it guilty of two violations of the Competition Act, each attracting a penalty of Sh42.5 million.

According to the ruling delivered by the competition watchdog on Wednesday, the insurer abused its buyer power and exercised a skewed bargaining position that favoured its interests over the welfare of its suppliers.

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The decision followed a complaint filed by two garages contracted to repair damag...