Nominated Senator Tabitha Mutinda has submitted a proposal that seeks to grant the Treasury Cabinet Secretary the powers to control the prices of basic commodities.
The lawmaker is seeking to Amend the Price Control Legislation of 2011 which will subsequently give the government the leeway to police the prices of essential household commodities such as maize flour and sugar, rice, cooking fat, oil among others.
The Bill seeks to Amend the Price Control (Essential Goods) Act 2011 to regulate the prices of essential commodities to secure their availability at reasonable prices for all Kenyans, especially low-income earners.
The senator claims that if enacted, the law will ensure that Kenyans are protected from exploitation and unscrupulous business persons.
Nominated Senator Tabitha Mutinda in a meeting with the CoG, June 2024
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Tabitha Mutinda
“We need to protect the consumers, at times you find the price is too exorbitant,” Tabitha said.
While the senator argues that she is focusing on the essential household goods, the Bill says that, from time to time, by order in the Gazette, the Cabinet Secretary may declare any goods to be essential commodities for this Act.
Although the idea is founded on the need to make essential commodities affordable, economists, industry players, and experts say it might do more harm than good.
The Secretary General of the Consumers Federation of Kenya (COFEK) Steven Mutoro argues that the Bill is unconstitutional and that one cannot set pricing if they are not able to control the factors of production and supply.
According to the SG, the Bill will distort market forces of supply and demand.
If enacted this Bill might also lead to many Kenyans in the manufacturing sector losing their jobs as it may chase investors who typically shy away from overzealous regulation and markets that are not open.
“When you do price control, you restrict players to come into the market. No new investor will come to a market that has price controls”, Steven Mutoro stated during an interview with Citizen TV.
In the same fashion, the Kenya Association of Manufacturers (KAM) and the Retail Trade Association of Kenya have advised that if the government wants to lower the prices of essential commodities, they should instead focus on reducing taxes and making the overall business environment better.
“If the government wants to reduce the prices of those essential commodities, then they should review the tax. If they say now they are focusing on the prices of essential commodities, then reduce the taxes around those essential commodities”, Mutoro said.
Several maize flour packets at a local supermarket
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Food Business Africa
