The Kenyan government is on the verge of obtaining new powers to regulate the prices of essential goods, aiming to stabilize the market and protect citizens from exploitation.
This development comes with the introduction of the Price Control (Essential Goods) (Amendment) Bill, 2024, sponsored by Nominated Senator Tabitha Mutinda.
If enacted, the Bill will enable the government to set retail and wholesale prices for key commodities, including maize, maize flour, wheat, wheat flour, rice, cooking fat or oil, sugar, and prescribed pharmaceutical drugs.
“This Bill aims to amend the Price Control (Essential Goods) Act, 2011, to regulate the prices of essential commodities, ensuring their availability at reasonable prices for all Kenyans, especially low-income earners,” the Bill states.
The proposed law specifies that the Cabinet Secretary for the National Treasury shall, by order in the Gazette, fix the minimum and maximum retail and wholesale prices for these essential goods. Beyond the listed commodities, the CS can also declare additional goods as essential and set their prices in consultation with industry stakeholders.
In setting these prices, the Bill mandates the CS to consider minimizing restrictions on competition, maintaining normal market conditions, and addressing severe market disturbances that cause price fluctuations. Additionally, the importance of these goods in promoting economic development and maintaining consumer purchasing power must be evaluated.
“The purpose of this Act is to guarantee access to crucial goods during crises such as natural disasters or public health emergencies,” the Bill states.
The legislation aims to prevent sudden price variations that could reduce purchasing power and harm consumer welfare. It also seeks to curb monopolistic and oligopolistic practices that exploit consumers by artificially inflating prices.
“This proposed law is vital for ensuring that all Kenyans, particularly those in low-income brackets, have access to essential goods at fair prices,” said Senator Mutinda.
“By regulating prices, we can protect consumers from exploitation and promote a more stable and equitable market.”
