Is it greed behind high food prices?

There are so many things troubling Kenyans at the moment. However, none seems to be more nagging — party primaries and their attendant chaos and violence notwithstanding — than the skyrocketing prices of basic commodities.

This is evident from the number of letters we receive daily from people from all corners of the country who are agonising and mourning over food prices.

From Siaya, Winnie Gladys Akinyi has written to complain about the high cost of food since January, and to demand an immediate solution to the problem.

“The worst part is that the prices rise each and every day and no one cares to talk about it. No one has come out to explain the reason behind high prices of foodstuff,” she writes, adding that even the price of water has gone up.

She concludes: “Nothing is being done about the high prices of food and this clearly shows that the Government doesn’t care about its citizens’ wellbeing.”

Another person who is extremely concerned about the food prices is Joseph Musyoki from Kitengela in Kajiado County.

But unlike Ms Akinyi, Mr Musyoki seems to have an idea who should be blamed for the sad state of affairs. He says it is “quite evident” that some individuals and organisations are taking advantage of the confusion and social upheavals surrounding the electioneering period to reap financially by either hoarding basic commodities, flooding the country with imports or just arbitrarily increasing the prices of goods and services for no good reason.

“Some of the reported high prices of basic goods and services such as milk, bread and flour defy economic fundamentals. If different brands of milk were all going for Sh45 per packet in January, why the sudden significant price difference among these brands of between Sh10 and Sh20?” he poses.

Poor regulation of the retail market, he adds, also contributes to the high cost of living.

“Even after factoring in the drought, some of the local supermarkets are contributing to the spiralling commodity prices, from outright overcharging or displaying prices different from those being charged at the till or deliberately concealing price tags.”

Examine closely

To address the high prices of goods, Musyoki advises the Government to examine closely the prices being charged along the supply chain to establish whether they reflect the reality on the ground: From farm prices through processing to wholesale and retailing.

“If the problem is high cost of farm inputs, high fuel/transportation costs or unnecessary middlemen brokering fees, the Government must be able to step in and address the contributing factors. There should be no room for speculative pricing of basic goods and services,” he says.

Finally, Millicent Akinyi from Kisumu also accuses the business community of taking advantage of the “current situation to hike the prices of commodities the way they desire”. She warns that if the problem is allowed to persist, the economy will “decline tremendously”.

Well, these are the views of “amateur” Kenyans on this serious issue. Exactly what is driving food prices up, Treasury Cabinet Secretary Henry Rotich, and what is the remedy?