- The Price Control (Essential Goods) (Amendment) Bill, 2024, gives the government the authority to set retail and wholesale prices for key commodities.
- The proposed law sponsored by nominated senator Tabitha Mutinda has been introduced in the Senate for First Reading.
Image: JACKTONE LAWI
The government will soon have powers to set prices for essential goods in a bid to stabilize prices and protect Kenyans from exploitation.
The Price Control (Essential Goods) (Amendment) Bill, 2024, gives the government the authority to set retail and wholesale prices for key commodities.
Among the essential commodities the state will set their prices include maize, maize flour, wheat wheat flour, rice, cooking fat or oil), sugar and prescribed pharmaceutical drugs.
"This Bill seeks to amend the Price Control (Essential Goods) Act, 2011 to regulate the prices of essential commodities in order to secure their availability at reasonable prices for all Kenyans, especially the low-income earners," the Bill reads.
The proposed law sponsored by nominated senator Tabitha Mutinda has been introduced in the Senate for First Reading.
“The (National Treasury) Cabinet Secretary shall, by order in the Gazette fix the minimum and the maximum retail and wholesale prices for the essential goods,” the Bill states.
Besides the listed commodities, the Bill states that the CS may, from time to time, by order in the Gazette declare any goods to be essential commodities.
The CS may also determine the minimum and maximum prices of the commodities in consultation with the industry, and also determine the category of persons to whom the minimum and maximum prices of the commodities shall apply.
However, economists have criticised the Bill, saying that if enacted, it will cripple the economy and end free market economy.
“Price Controls! Back to 1992 KANU days. If this Bill goes through, it will end economic liberalisation and free market economy,” former Mandera Senator Billow Kerrow said.
He added: “It will also usher in the attendant rent-seeking and corruption in the corridors of power, big time. More significantly, it will kill investment and our competitiveness in the region. Completely misplaced.”
In setting the minimum and maximum prices of essential goods under this Act, the Bill states that the CS shall have regard to the minimum possible restrictions on competition, normal market conditions and severe disturbances on the market that justifiably lead to fluctuation of prices.
The CS will also consider the significance of the particular essential goods in ensuring economic development and consumer purchasing power.
Mutinda argued that the Bill if enacted, would prevent essential goods and services from becoming unaffordable to the public.
It will also stabilise prices of essential goods in order to ensure that the cost of living remains manageable for the public.
“The enactment of this law will also ensure that Kenyans are protected from exploitative and unscrupulous businesspersons,” the Bill reads.
The proposed law also seeks to prevent sudden variations in price of essential goods that may lead to a decrease in purchasing power and a decline in overall consumer welfare.
Further, it seeks to prevent market actors such as monopolies and oligopolies from exploiting their dominant position to artificially inflate prices and take advantage of consumers’ lack of alternatives.
“The object of this Act is to guarantee access to crucial goods during times of crisis such as natural disasters or public health emergencies,” it states.
Currently, the government, through the Energy and Petroleum Regulatory Authority (Epra) sets prices for fuel products every month based on the global market forces and trends.