Traders cautioned against price hikes following outbreak
The Kenya Association of Manufacturers (KAM) has discouraged its members against increasing the prices of their products in the wake of Covid-19 pandemic discovery in Kenya.
Upon announcement of the discovery of the first case of the virus in Kenya by Health Cabinet Secretary Mutahi Kagwe, Kenyan shoppers flocked various supermarkets in panic buying mode, depleting sanitiser stocks and other basic household supplies.
Hoarding commodities
And with fears of price hikes imminent, the Competition Authority of Kenya (CAK) weighed in, warning manufacturers and retailers contemplating collusive increases of prices and/or hoarding with the intention of subsequently increasing prices, of dire consequences.
On Saturday, CAK director general Francis Wang’ombe warned manufacturers and retailers that colluding to increase or hoard commodities contravened section 21 (1) of the Competition Act No 12 of 2010 and would attract a penalty of up to 10 per cent of their turnover.
KAM chief executive Phyllis Wakiaga asked producers and manufacturers to uphold their contractual obligations and not increase producer prices.
“KAM advocates that the rule of law prevails during this time and that all producers and distributors continue to uphold existing contractual obligations, especially with regard to price controls for the sake of consumers,” said Wakiaga.
She said from today, KAM will provide a live database of locally manufactured finished goods through its website, www.kam.co.ke and portal www.mykam.co.ke to address gaps that may stem from shortage of finished products in the local market.
“We ask the public to seek factual information to avoid exacerbating the situation through panic buying,” she said.
