News
Kenya MPs start push for price controls
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
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.
Debate on the Bill was concluded and it now awaits the committee stage where amendments may be proposed by MPs.
If it sails through the remaining stages of enactment, it would pave way for establishment of a legal framework to require the Minister for Finance to fix the maximum retail and wholesale prices for the goods.
It would criminalise buying or selling of the mentioned goods at a price which exceeds the maximum price fixed for the goods.
Moving debate on the Bill, Eng Maina said it had become necessary because attempts by the government to use market forces to lower prices as well as its exhortations to traders not to overcharge consumers of the essential goods had not borne fruit.
“It has become critical to control the prices of the listed goods to protect Kenyans from exploitative and unscrupulous businesspersons,” he said.
He argued that if enacted, the Bill would help to mitigate the effects of food shortage that citizens have been grappling with.
“It is important to note that the market for most of these goods is dominated by a few market players who appear to work in cahoots to frustrate the forces of demand and supply,” he said.
The result of this cartel like behaviour, he argued, is that the prices have remained unreasonably high and out of the reach of most Kenyans even when they should be coming down in light of prevailing international prices and the global recession.
“This is a poor man’s Bill. We must not allow our citizens to be oppressed in this manner,” he said.
Mr Ekwe Ethuro (Turkana Central, PNU), criticised the recent move by government to change inflation parameters saying it was a tactic to hide the real cost of living.
“We should tackle the real triggers of high inflation and intervene from this point,” he said.
Public Works minister Chris Obure supporting, said fuel prices were unreasonably high.
Mr Erastus Mureithi (Ol-Kalou, PNU) said food was a basic human right and allowing Kenyans to sleep hungry and sometimes die because of high food prices was a violation of the right.
Mr Edwin Yinda (Alego Usonga, ODM) said people should be able to afford at least two meals a day. “It should not be a case of the rich affording three expensive meals a day when the poor man can only budget with Sh50,” he said.
Dr Joyce Laboso (Sotik, ODM) said the government should take responsibility for its citizens.
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Submitted by mcbeth24Posted November 26, 2009 04:03 PM
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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 -
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 -
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 -
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




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