Marketers want retailers to stick to recommended prices

By KEVIN TUNOI

The Chartered Institute of Marketers (CIM) wants distributors, suppliers and retailers who have arbitrarily increased prices of goods and services under the guise of the new VAT law exposed.

The institute expressed displeasure on the rise of prices of basic commodity goods by over 20 per cent with no valid justification.

CIM Chairman James Ngomeli said prices of products that do not attract the new VAT charges had been increased arbitrarily since the new law came into effect.

“Prices of basic commodities that do not attract the tax have suspiciously been hiked while those that are to be taxed under the new tax regime have their prices hiked by over 20 per cent, which is illegal,” he said at a press conference in Eldoret Tuesday.

He added that the price hikes are against the letter and spirit of the VAT law and further erodes the goodwill of citizens towards the government.

Ngomeli appealed to their members not to take advantage of the VAT law to effect illegal price hikes.

“We are in charge of retail outlets and also the setting of prices thus our members should not use the opportunity to over-price goods or services,” he added.

He noted that they have identified some firms that have illegally increased the prices of their commodities and have written to them to adjust them downwards.

“We have talked to most of our members by letter and verbally. Some have already complied, and we hope more will follow suit so that we can save Kenyans from high costs of living,” Ngomeli said.

He urged the marketers, who have contracts with retailers, to ensure the traders charge recommended prices.

“The producers have not increased prices but the retailers are making a kill at the expense of wananchi who blame producers yet it is not their fault. This should stop,” added Ngomeli.

He called on Marketing Society of Kenya and CIM to play their roles in ensuring fair marketing practices.