Kenya MPs start push for price controls

• 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.

“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.

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.

She said it should borrow from other economies that have successfully cushioned citizens.

Ms Milly Odhiambo (Nominated, ODM) said fish should be included on the essential goods’ list.

Mr Martin Oginde (Rangwe, ODM) said the government was preoccupied with implementation of policies of developed countries.

Sheikh Dor Mohamad (Nominated, ODM said MPs and government must fulfill campaign promises made to Kenyans.

Mr Nelson Gaichuhi (Subukia, PNU) also supported the Bill.