In a significant move to manage the cost of living, the Price Control (Essential Goods) (Amendment) Bill, 2024, was introduced in Parliament yesterday. The bill proposes granting the Treasury Cabinet Secretary (CS) the authority to set both minimum and maximum retail prices for key commodities, including maize, maize flour, wheat, wheat flour, rice, cooking oil, sugar, and prescription medicine.
Under the proposed legislation, the CS would be required to announce these price adjustments through a Gazette Notice following consultations with industry stakeholders. Additionally, the bill empowers the CS to designate any goods as essential commodities and determine their pricing and classification.
The legislation stipulates that price controls be based on various factors, including production costs, market conditions, and the goods’ economic importance.
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The Treasury Ministry will be responsible for;
- Evaluating severe market disturbances
- The significance of essential goods
- The enhancement of domestic market competitiveness
- Consumer purchasing power before setting prices.
The department, led by a director of price control, will oversee the enforcement of these controls once they are gazetted. This unit will monitor compliance, track abnormal price fluctuations, analyze market data, and provide public education on pricing. It will also make recommendations to the government based on its findings and maintain detailed records of price changes.
The introduction of this bill follows widespread youth protests earlier this year, which criticized the government’s attempt to increase taxes and highlighted the soaring cost of living. In response to the protests, President William Ruto withdrew the Finance Bill and previously announced measures aimed at reducing the prices of essential items such as maize flour and cooking oil.
If approved, this bill represents a proactive effort to stabilize the cost of essential goods and address public concerns over economic pressures.