Govt Given Powers to Dictate Prices of Maize Flour & 7 Essential Items in New Price Control Bill
A new piece of legislation is being developed to grant the Ministry of Treasury the authority to set the sale prices for eight essential food items, similar to the way it regulates the prices of fuel products like super petrol, diesel, and kerosene.
The Price Control (Essential Goods) (Amendment) Bill, 2024, introduced in Parliament, suggests that the Treasury Cabinet Secretary be given the responsibility to establish both the minimum and maximum retail prices for various commodities, including maize and maize flour.
The scope of the bill also includes other essential products such as wheat, wheat flour, rice, cooking oil, sugar, and prescription medicines.
According to the bill, the Cabinet Secretary must announce the set prices through a Gazette Notice after consulting with industry stakeholders.
If enacted, the Cabinet Secretary will gain the authority to classify goods as essential commodities and set their minimum and maximum prices, as well as determine their relevant categories.
Additionally, the bill stipulates that price limits can be set according to costs, market conditions, and the importance of the goods for economic growth.
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The Treasury Ministry will need to take into account significant market disruptions, the importance of specific essential goods, the enhancement of domestic market competition, and consumer purchasing power when setting these prices.
The Cabinet Secretary will also be required to appoint a department responsible for overseeing and enforcing price controls once they are officially gazetted.
This department, led by the director of price control, will handle compliance monitoring, watch for abnormal price increases, gather and analyze market data, and enforce price control measures.
Other duties will include advising the government based on analysis, educating the public on prices, and maintaining detailed records of price fluctuations.
The bill also specifies that the Cabinet Secretary must appoint necessary public officers to serve as price control officers to ensure the effective execution of the unit’s functions under this Act.
This legislation follows a series of protests by Kenyan youth against new taxes and high living costs. The demonstrations, which erupted in June, led President William Ruto to withdraw the Finance Bill. Previously, the Ruto administration had claimed to have implemented measures that had reduced the prices of essential items like maize flour and cooking oil.
Govt Given Powers to Dictate Prices of Maize Flour & 7 Essential Items in New Price Control Bill
