Desmond Kaunda Named Chief Executive Officer of Competition and Fair Trading Commission

The Competition and Fair Trading Commission (CFTC) Malawi has recently undergone significant executive management changes, coinciding with the operationalisation of the Competition and Fair Trading Act 2024. Mr. Desmond Kaunda was appointed as the new Chief Executive Officer in April 2026, following the confirmation of a new Board of Commissioners in January 2026, chaired by Mr. Jimmy Korea Mpatsa. These leadership appointments occur at a pivotal time, as the new Act, effective July 1, 2024, substantially strengthens the CFTC’s enforcement powers, introduces mandatory and suspensory merger notification thresholds, and broadens consumer protection provisions. Legal practitioners must note these developments, as the enhanced regulatory framework and new leadership signal a more assertive approach to competition and fair trading enforcement in Malawi, necessitating rigorous compliance and strategic legal counsel for businesses operating in the jurisdiction.

Malawi's competition and consumer protection landscape is entering a new era, marked by significant changes in the executive management of the Competition and Fair Trading Commission (CFTC) and the recent enactment of a robust legislative framework. In a pivotal development, Mr. Desmond Kaunda was appointed as the new Chief Executive Officer of the CFTC in April 2026. This appointment closely followed the confirmation of a new Board of Commissioners in January 2026, with Mr. Jimmy Korea Mpatsa assuming the role of chairperson.

These leadership transitions are not isolated events but are intrinsically linked to the operationalisation of the Competition and Fair Trading Act 2024 (CFTA 2024), which came into force on July 1, 2024. The new Act repeals its 1998 predecessor, introducing far-reaching reforms that significantly enhance the CFTC's mandate and enforcement capabilities. For legal practitioners, these concurrent developments signal a heightened regulatory environment, demanding a thorough understanding of the updated legal provisions and the strategic priorities of the Commission's new leadership. This article will delve into the implications of these executive changes within the context of Malawi's strengthened competition and fair trading regime.

The Competition and Fair Trading Commission (CFTC) is a statutory corporation established to regulate, monitor, control, and prevent acts or behaviours that adversely affect competition and fair trading in Malawi. For over two decades, its operations were governed by the Competition and Fair Trading Act 1998. However, this previous legislation presented several limitations, particularly concerning the CFTC's enforcement powers. A critical turning point came with the High Court of Malawi Civil Division's ruling in *Airtel Malawi Plc v Competition & Fair Trading Commission*, Civil Appeal Cause No. 17 of 2023. In this landmark decision, the High Court held that the CFTC lacked the statutory authority to impose administrative or penal sanctions under the 1998 Act, significantly weakening its regulatory teeth.

Recognising these gaps and the need to align with international best practices, the Malawian Parliament passed the Competition and Fair Trading Act 2024, which received presidential assent and became effective on July 1, 2024. This new Act represents a comprehensive overhaul of the competition and consumer protection framework. It explicitly addresses the deficiencies of the repealed Act by granting the CFTC express powers to issue administrative orders, including substantial financial penalties. Furthermore, the CFTA 2024 introduces a mandatory and suspensory merger notification procedure, a significant departure from the previous voluntary regime, and broadens the scope of consumer protection.

The recent executive management appointments at the CFTC are particularly significant given the expanded powers and responsibilities conferred by the CFTA 2024. Mr. Desmond Kaunda, as the newly appointed Chief Executive Officer, is tasked with the overall management and operation of the Commission and ensuring the effective administration and implementation of the new Act. Similarly, the new Board of Commissioners, led by Chairperson Jimmy Korea Mpatsa, provides policy oversight and performs a quasi-judicial role in determining cases investigated by the secretariat. Their collective leadership will be instrumental in shaping the enforcement direction and priorities under the strengthened legal framework.

One of the most impactful changes for businesses is the CFTC's newly confirmed authority to impose administrative orders, including financial penalties. Under the CFTA 2024, the Commission can now levy fines of up to 10% of annual turnover for companies and up to 5% of annual income for individuals found to be in contravention of the Act. This directly remedies the enforcement limitations highlighted by the *Airtel Malawi Plc* judgment, providing the CFTC with a formidable tool to deter anti-competitive practices and unfair trading. The new Act also empowers the CFTC to issue various redress orders, such as instructing refunds, product exchanges, withdrawal of false advertisements, and termination of unfair contracts.

Another critical development is the introduction of a mandatory and suspensory merger notification regime. Previously, merger notifications were voluntary, allowing potentially anti-competitive transactions to proceed without prior scrutiny. The CFTA 2024, supplemented by Government Notices No. 76 and No. 77 of 2024, now mandates notification for mergers, takeovers, or acquisitions that meet specific financial thresholds. These thresholds are set at a combined annual turnover or asset value of MWK 10 billion (approximately USD 5.7 million) or an annual turnover of the target undertaking exceeding MWK 5 billion (approximately USD 2.85 million) in, into, or from Malawi. This shift necessitates that merging parties obtain prior approval from the CFTC, introducing a crucial pre-implementation regulatory hurdle.

Beyond these core changes, the CFTA 2024 also broadens the definition of 'consumer' to offer greater protection to vulnerable customers and introduces measures to address the abuse of buyer power, which was not explicitly covered under the previous Act. The Commission is also empowered to conduct market inquiries and studies, allowing for a more proactive approach to identifying and addressing systemic competition issues. Furthermore, the Act enhances the governance and independence of the Commission by subjecting the appointment and removal of Commissioners to the scrutiny of the Public Appointments Committee of Parliament, ensuring suitability and independence in their functions.

The recent executive management appointments at the Competition and Fair Trading Commission, coupled with the comprehensive reforms introduced by the Competition and Fair Trading Act 2024, herald a significantly strengthened regulatory environment in Malawi. Legal practitioners must recognise that the CFTC, under its new leadership, is now equipped with robust enforcement powers, including the ability to impose substantial financial penalties and mandate merger notifications. This shift necessitates a proactive and diligent approach to compliance for all businesses operating in or interacting with the Malawian market.

Practitioners should immediately review their clients' business practices, particularly concerning anti-competitive conduct, consumer protection, and merger strategies, to ensure full alignment with the CFTA 2024. The increased regulatory scrutiny and the CFTC's commitment to aligning with international best practices mean that non-compliance carries greater risks than ever before. Staying abreast of the Commission's pronouncements, guidelines, and enforcement actions will be crucial for providing effective legal counsel in this evolving landscape, as the new era of competition law enforcement in Malawi takes firm root.