National Treasury Cabinet Secretary Njuguna Ndung'u will have the powers to regulate prices of essential commodities, if a draft bill before Parliament is implemented.
The Price Control (Essential Goods) (Amendment) Bill, 2023, proposed by Khwisero MP Christopher Aseka, seeks to amend the Price Control (Essential Goods) Act of 2011, by introducing a section providing for the development of policy guidelines to set the maximum retail and wholesale prices for essential goods.
If the National Assembly approves the bill, the CS can determine the prices for maize, maize flour, wheat, wheat flour, rice, cooking fat, oil, and sugar.
Further, the bill suggests that the CS can make recommendations on the reduction of tariffs and taxes on essential goods which will be factored in every year's financial statement.
According to MP Aseka, the purpose of the bill is to shield consumers from sudden increases in prices for basic commodities, especially at a time when Kenyans are grappling with tough economic times.
He argues that some retailers take advantage by hoarding the commodities to increase the market prices.
The lawmaker says that the bill seeks to promote fair competition within the market.
The bill has, however, raised concerns from Members of Parliament who argue that the prices of some of the commodities are determined by demand and supply factors.
"There is no producer who will want to continue with their business if the prices are lowered," Budget and Appropriations Committee chair Ndindi Nyoro said during a committee meeting held on Thursday.
MP Aseka, while appearing before the MPs, maintained that the bill's purpose is to achieve a balance between protecting consumer interests and factoring in the international prices of the market.
