Price Controls and the Kenyan Economy.

26 Sep

President Kibaki assented the Price Control Act 2011. This will require that The Treasury to fix the retail and wholesale prices of essential comodities, thus ensuring their availability at a resonable prices.

This is good news to the consumers as greedy traders and producers will be punished. On the other hand economist fear that this may cause investor flight and or may lead to shortage of essential commodities as business may not be to withstand losses.

The price fixing and control, according to economist will encourage hoarding by producers who will only sell if the price is right for them and to an extend encourage black market business.

If this act works is there to be seen or it could be one of those acts that are enacted when need in the future.

Advertisements

Kindly leave your comment.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s