Price Control Bill 2024: Government to Regulate Prices of Essential Goods

The Kenyan government may soon gain the authority to regulate prices for essential goods under the proposed Price Control (Essential Goods) (Amendment) Bill, 2024.

This legislation is designed to stabilize the market and shield consumers from price exploitation.

If enacted, the Bill will empower the government to set retail and wholesale prices for essential commodities, including maize, maize flour, wheat, wheat flour, rice, cooking oil, sugar, and certain pharmaceutical drugs.

“This Bill proposes an amendment to the Price Control (Essential Goods) Act, 2011, to ensure that essential commodities are available at fair prices for all Kenyans, particularly those with lower incomes,” the Bill outlines.

Introduced by Nominated Senator Tabitha Mutinda, the proposed law is currently in its First Reading in the Senate. It stipulates that the Cabinet Secretary for the National Treasury will set both minimum and maximum prices for these essential goods through a Gazette order.

The Bill also allows the CS to add more goods to the essential list and set price limits for these items in consultation with industry stakeholders. The pricing regulations will aim to minimize market restrictions, maintain normal market conditions, and address severe price fluctuations.

In addition, the CS will need to consider how the regulation of essential goods affects economic development and consumer purchasing power, while preventing monopolistic practices that could lead to inflated prices.

The proposed legislation seeks to prevent sudden price hikes that can diminish consumer purchasing power and protect against market abuses by dominant players.