The government is poised to gain the authority to set prices for essential goods, aiming to stabilize the market and protect Kenyans from exploitation.
If passed into law, the Price Control (Essential Goods) (Amendment) Bill, 2024, grants this power, allowing the government to regulate retail and wholesale prices for key commodities.
Essential commodities such as maize, maize flour, wheat, wheat flour, rice, cooking fat or oil, sugar, and prescribed pharmaceutical drugs will fall under state-regulated prices.
“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.
Nominated Senator Tabitha Mutinda introduced the proposed law in the Senate for its First Reading. The Bill 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 essential goods.”
Beyond the listed commodities, the Bill permits the CS to declare additional goods as essential by order in the Gazette. The CS can also set minimum and maximum prices for these commodities in consultation with the industry and determine the categories of persons to whom these prices will apply.
In setting these prices, the Bill requires the CS to consider minimizing restrictions on competition, maintaining normal market conditions, and addressing severe market disturbances that cause price fluctuations.
The CS must also evaluate the importance of the essential goods in promoting economic development and maintaining consumer purchasing power.
The proposed law seeks to prevent sudden price variations of essential goods that could reduce purchasing power and harm overall consumer welfare. Additionally, it aims to stop monopolies and oligopolies from exploiting their dominant positions to artificially inflate prices, taking advantage of consumers’ lack of alternatives.
“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.
