News

Kenya MPs start push for price controls

  Share Bookmark Print Email
Email this article to a friend

Submit Cancel
Rating
The architect of the Price Control (Essential Goods) Bill, 2009 Ephraim Maina wants to protect Kenyans from cartels that manipulate the forces of demand and supply to suit their profits.Phot/FILE

The architect of the Price Control (Essential Goods) Bill, 2009 Ephraim Maina wants to protect Kenyans from cartels that manipulate the forces of demand and supply to suit their profits.Phot/FILE 

By CAROLINE WAFULA
Posted  Wednesday, November 25  2009 at  15:21

In Summary

  • If enacted, Bill will protect Kenyans from cartels that manipulate the forces of demand and supply to suit their profits.

The price of essential commodities may soon be controlled, if Kenya legislators have their way.

MPs have overwhelmingly supported a Bill that seeks to cushion the common man from skyrocketing prices of crucial commodities.

They include items such as maize and flour, wheat and flour, cooking fat/oil, sugar, paraffin, diesel and petrol.

The Price Control (Essential Goods) Bill, 2009 seeks to compel the Minister for Finance to control the prices of these goods and if enacted into law, will protect Kenyans from exploitative and unscrupulous business cartels that manipulate the forces of demand and supply to suit their profits.

Initiated by Mathira MP Ephraim Maina (Safina), the Bill received overwhelming support from MPs who argued that it was necessary for the common man in today’s high cost of living.

Seconding the Bill, Nicholas Gumbo (Rarieda, ODM) said prices have drastically risen since December 2002 when Mwai Kibaki was elected president.

He said that a 2kg packet of maize flour currently retails at Sh95 from about Sh34 then and a 2kg packet of wheat flour is priced Sh110 from Sh58.

Mr Gumbo added that a 2kg of cooking fat had risen from Sh133 to Sh300, a 2kg packet of rice from Sh120 to Sh320, a 2kg packet of sugar from Sh75 to Sh180, a litre of petrol from S48 to Sh85, paraffin from Sh23 to Sh65 and diesel from Sh38 to Sh74 per litre.

Share This Story
Share

“The prices of goods most used by the common man have increased the most,” the MP said.

Government whip Jakoyo Midiwo, in support, said Parliament must do more.

“The list should include more goods and we should, in fact, ask Kenyans to tell us which items they want prices controlled,” he said.

He warned that the government may be risking a revolution in the wake of the escalating prices of important commodities.

Noting that there was opposition from Treasury and the Central Bank of Kenya, he said MPs would side with Kenyans and the authorities should be alerted.

Mr John Mbadi (Gwassi, ODM) said the government should move fast to regulate food prices to avoid a situation of food riots.

“We should come up with policies to result in stable prices that are reasonably affordable to the common man,” he said.

1 | 2 | 3 Next Page »

Add a comment (28 comments so far)

  1. Submitted by mcbeth24

    The matter is very simple. We have seen what an uncontrolled market can do to Mwananchi. Its a disaster and we need change.

    Posted  November 26, 2009 04:03 PM  
  2. Submitted by menace2society

    Price controls? How about control the cost of production? Power accounts for over 30% of production costs in certain companies. Lower tax or give incentives, Improve infastructure,Improve security.

    Posted  November 26, 2009 03:33 PM  
  3. Submitted by tuffgong

    they shld first put their undeserveable astronomical wages on a tight leash.only they cld go to supermarkets n afford a bundle of maize meal n other luxuries lke holidayz to the moon.

    Posted  November 26, 2009 03:18 PM  
  4. Submitted by Muinde09

    Price control is not the long term solution. it will lead to hoarding and even higher prices, black market and so on.Kenyans may not be aware that taxes on fuel are one of the highest in the world. the govt needs to face the situation squarely. reduce taxes on fuel to make the cost of production cheaper, subsidize farm inputs e.g fertilizers, like it happens in other countries( s. africa). our leaders are taking a short-cut by treating the symptoms. Face the illness head-on.

    Posted  November 26, 2009 02:28 PM  
  5. Submitted by Mataraja

    For once our MPs seem to be living in the same planet as everybody else! They are genuinely concerned with the plight of ordinary Kenyans, and are doing something about it. Well done Hon Maina and all the other MPs who contributed. I hope the good MPs also address the downside to price controls such a shortages with their attendant corruption, and disappearance of goods to the black market, which hurt the very people the Bill is meant to protect. This Bill should however be a temporary interim measure while our leaders address the causes of the current situation.

    Posted  November 26, 2009 02:13 PM  

See all 28 comments