The Price Control (Essential Goods) (Amendment) Bill, 2024
Status Timeline
Proposed
Active now
Public Review
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Debate
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Executive
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Final
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Mandatory Price Fixing for Key Goods
Under the new Section 2(1), the Cabinet Secretary for Finance is required to fix minimum and maximum wholesale and retail prices for designated essential goods: maize, maize flour, wheat, wheat flour, rice, cooking fat or oil, sugar, and prescribed pharmaceutical drugs.
Creation of the Price Control Unit
The Bill introduces Section 3A, which establishes a Price Control Unit within the Ministry. Headed by a Director of Price Control, the Unit will monitor compliance with prescribed prices, detect abnormal price increases, analyze market data, and collaborate with other regulators to prevent market manipulation.
Financial and Tax Incentives for Producers
To balance price controls with economic viability, Section 2(2)(e) empowers the Cabinet Secretary, in consultation with relevant ministries, to prescribe financial and tax incentives for farmers, manufacturers, and retailers of essential commodities.
Bill No.
Senate Bills No. 41
Gazette No.
Supplement No. 146
Sponsor
Tabitha Mutinda
Background
The Price Control (Essential Goods) (Amendment) Bill, 2024, seeks to amend the Price Control (Essential Goods) Act, 2011. The primary objective of the Bill is to secure the availability of essential commodities at reasonable prices for Kenyans, particularly low-income earners, and to protect consumers from exploitation by dominant market players, monopolies, or oligopolies.
Key Amendments
- Object of the Act (Section 1B): Explicitly outlines goals such as preventing essential goods and services from becoming unaffordable, stabilizing prices, safeguarding consumer purchasing power, preventing monopolies from artificially inflating prices, and ensuring access to crucial goods during crises.
- Declaration of Essential Goods (Section 2): Mandates the Cabinet Secretary responsible for finance to publish Gazette orders fixing the minimum and maximum retail and wholesale prices for a specific list of essential goods. It also allows the Cabinet Secretary to declare additional goods as essential commodities and define the categories of persons to whom these prices apply.
- Price-Setting Considerations (Section 3): Requires the Cabinet Secretary to set prices with regard to specific measures, including minimizing restrictions on competition, normal market conditions, severe market disturbances, consumer purchasing power, and environmental and health requirements.
- Price Control Unit (Sections 3A–3D): Mandates the designation of a department within the Ministry as the Price Control Unit. This Unit, led by a Director of Price Control, will act as the enforcement arm of the Act.
New Obligations
- The Cabinet Secretary must consult with the industry to determine price limits and consult with relevant ministries to design financial and tax incentives for farmers, manufacturers, and retailers.
- The Price Control Unit is obligated to:
- Monitor market compliance with price controls.
- Collect and analyze pricing trends and market data.
- Enforce price control directives.
- Educate the public on price control policies.
- Prepare quarterly reports detailing the effectiveness of price controls and suggesting adjustments.
No updates tracked yet
Updates will be visible here once they are approved and applied to this bill.