Fix prices of essential commodities
Jun 29, 2010
EDITOR—Ugandan business people have started complaining about the Bill passed by the Kenyan Parliament authorising the Treasury to fix the maximum price of essential commodities.
EDITOR—Ugandan business people have started complaining about the Bill passed by the Kenyan Parliament authorising the Treasury to fix the maximum price of essential commodities.
That is certainly a move that the Ugandan Parliament should follow. Unbridled capitalism of the type the Ugandans have been fed on by the Government does little to protect the common man from the greed of business people.
As a result you find the price of petrol, diesel, paraffin, sugar, maize flour, matooke and transport shoot up ridiculously during demand peaks or when there are shortages.
This notion of market forces is tantamount to daylight robbery, and should be stopped. Government has the obligation to protect the Ugandan consumer from unscrupulous business people. Kenya is simply following what governments do elsewhere in the world to regulate the economy and to protect the weak and poor.
The price of petrol in South Africa is fixed every few months by the government, and you do not get the sort of mayhem that hits Ugandan motorists when the supply goes down. The interest rates the banks charge are also fixed based on the Repo Rate that is announced every few months.
Banks can only charge 1-2% points above the Repo Rate announced by the Reserve Bank. This is being done in a sophisticated economy. Why should we pretend to be more sophisticated with our free-for-all prices and interest rates?
The cost of production is very high in Uganda largely because of poor work ethics and greed. Since the tariff barriers are coming down, Ugandan consumers can start shopping for the said commodities in Kenya and benefit.
Dr. G. A. B Buga
South Africa
That is certainly a move that the Ugandan Parliament should follow. Unbridled capitalism of the type the Ugandans have been fed on by the Government does little to protect the common man from the greed of business people.
As a result you find the price of petrol, diesel, paraffin, sugar, maize flour, matooke and transport shoot up ridiculously during demand peaks or when there are shortages.
This notion of market forces is tantamount to daylight robbery, and should be stopped. Government has the obligation to protect the Ugandan consumer from unscrupulous business people. Kenya is simply following what governments do elsewhere in the world to regulate the economy and to protect the weak and poor.
The price of petrol in South Africa is fixed every few months by the government, and you do not get the sort of mayhem that hits Ugandan motorists when the supply goes down. The interest rates the banks charge are also fixed based on the Repo Rate that is announced every few months.
Banks can only charge 1-2% points above the Repo Rate announced by the Reserve Bank. This is being done in a sophisticated economy. Why should we pretend to be more sophisticated with our free-for-all prices and interest rates?
The cost of production is very high in Uganda largely because of poor work ethics and greed. Since the tariff barriers are coming down, Ugandan consumers can start shopping for the said commodities in Kenya and benefit.
Dr. G. A. B Buga
South Africa