wazua Thu, Mar 26, 2026
Welcome Guest Search | Active Topics | Log In

6 Pages<12345>»
Price Control Act for essential commodities
Options
Previous Topic · Next Topic
Njung'e
#21 Posted : Thursday, June 24, 2010 5:54:55 PM
Rank: Elder

Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
South Africa has fuel control too and they are hosting the world.
Nothing great was ever achieved without enthusiasm.
Back to top
  |
mukiha
#22 Posted : Thursday, June 24, 2010 6:20:11 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
@the Deal; there is no VAT on food stuff in Kenya. In fact thesae are zero-rated, meaning that food processors claim the VAT paid for inputs like electricity.

@kadonye; yes, even petrol. I wrote a very comprehensive proposal to ERC on how to regulate (rather than control) the petroleum market.

This was around the same time that they proposed a pricing formula. My basic idea was to have price change date when all dealers are allowed to vary their prices. Once fixed, these should not be changed (either up or down) until the next changed date the following month. That way, if a station puts its price too high, it has to live with it for 30 days.

ERC are still thinking about it.
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
Back to top
  |
the deal
#23 Posted : Thursday, June 24, 2010 6:30:06 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Rise above your own interests of owning shares of Kenol and look at the masses out there,people in Kenya are suffering due to this oil cartels...some pals of mine in campus cant afford that Unga u are talking about...they have to go to shags n take maize which they take to private millers.
Back to top
  |
BGL
#24 Posted : Thursday, June 24, 2010 6:56:04 PM
Rank: Veteran

Joined: 10/11/2009
Posts: 1,223
Once upon a time there was a man called Joe Donde the architect of the Donde Act.

The Donde Act provided that the maximum interest rate chargeable on all loans and advances from 1st January 2001 is
“the 91-day Treasury-Bill rate published by the Central Bank of Kenya on the last Friday of each month, or the latest published 91-day Treasury Bill rate, plus 4 per centum”.
It went further, by way of proviso, to provide that
“Provided that the maximum interest chargeable shall not exceed the principal sum, and that the section should only apply to loans and advances made or renewed after commencement of the Act’.

I will wait and see how far this one will go!!! However, IMHO this is a populist move though loaded with good intentions.
History will not remember you for your IQ. It will remember you for what you did. “Genius is 1 percent inspiration, 99 percent perspiration.” Thomas Edison
Back to top
  |
mukiha
#25 Posted : Friday, June 25, 2010 9:48:32 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
the deal wrote:
Rise above your own interests of owning shares of Kenol and look at the masses out there,people in Kenya are suffering due to this oil cartels...some pals of mine in campus cant afford that Unga u are talking about...they have to go to shags n take maize which they take to private millers.

This appears like a tough choice: Available but expensive OR Cheap but not available.

If you control the price of a commodity, you must also control the cost of producing it. Otherwise, producers will go to something else that is not controlled....why sell controlled maize and make 5% margin while I can make 20% from bananas?

There is a fallacy that has been peddled for many years to the effect that petrol companies operate as a cartel thus fixing prices unfairly high.

I attended the open forum at ERC during the time they were planning to "regulate" petrol prices. The data presented by ERC showed that the prices are not actually "too high".

If you want to know, look at the GROSS margins of Total and KenolKobil as announced to shareholders.

Total/Kenol etc do not fix the consumer prices. They let their station operators decide how much to charge. The operators are "ordinary Kenyans". This is why you will find the TOTAL on Dennis Pritt Rd selling at 93.90, while the one at Argwins Kodhek is 91.90
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
Back to top
  | | Edit by user: Friday, June 25, 2010 9:51 AM | Reason: Not specified
KulaRaha
#26 Posted : Friday, June 25, 2010 10:44:54 AM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
the deal wrote:
Rise above your own interests of owning shares of Kenol and look at the masses out there,people in Kenya are suffering due to this oil cartels...some pals of mine in campus cant afford that Unga u are talking about...they have to go to shags n take maize which they take to private millers.


What you earn with your little holdings in KK and Total is measly compared to what you will save if this government regulates (not controls) the oil cartels.

And dont be scared of multinationals leaving, India has all local oil cos working under strict controls and they are all profitable. In fact,as a nation, India was a net importer of refined oil, but now due to good business, has become an exporter of refined. And I dont think think they have many/any oil wells there, so really they are not controlling the production.
Business opportunities are like buses,there's always another one coming
Back to top
  | | Edit by user: Friday, June 25, 2010 10:48 AM | Reason: Not specified
VituVingiSana
#27 Posted : Friday, June 25, 2010 8:10:59 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,354
Location: Nairobi
KulaRaha wrote:
India has fuel price control, and is doing better economically than we ever will.

Malaysia had fuel price control until 2008, and they are also better off than we are.


What a load of crap!

India is doing better than us but it is NOT coz of fuel price controls but the other factors like dynamism & entrepreneurship... Many world-class companies from India including Bharti Airtel buying Zain in Africa.

BTW, the Indian government heavily subsidizes the Oil Marketers. Also India does produce some of its own oil in the NW region (google).

Kenya produces ZERO oil.

Malaysia is an even WORSE example!!! It is a NET oil exporter!!! So it simply does not TAX the oil/fuel like Kenya!!! Fuel is very cheap in UAE (net oil exporter) coz little or no taxes...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  |
VituVingiSana
#28 Posted : Friday, June 25, 2010 8:13:52 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,354
Location: Nairobi
the deal wrote:
Rise above your own interests of owning shares of Kenol and look at the masses out there,people in Kenya are suffering due to this oil cartels...some pals of mine in campus cant afford that Unga u are talking about...they have to go to shags n take maize which they take to private millers.


How many siblings are they in the family? At some point the parents have to learn to have small families. The days of having 5-6-7-10-15 kids has gone. 2 kids shud be the norm...

BTW, aren't these the same farmers who want a MINIMUM price for their maize?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  |
VituVingiSana
#29 Posted : Friday, June 25, 2010 8:19:14 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,354
Location: Nairobi
KulaRaha wrote:
the deal wrote:
Rise above your own interests of owning shares of Kenol and look at the masses out there,people in Kenya are suffering due to this oil cartels...some pals of mine in campus cant afford that Unga u are talking about...they have to go to shags n take maize which they take to private millers.


What you earn with your little holdings in KK and Total is measly compared to what you will save if this government regulates (not controls) the oil cartels.

And dont be scared of multinationals leaving, India has all local oil cos working under strict controls and they are all profitable. In fact,as a nation, India was a net importer of refined oil, but now due to good business, has become an exporter of refined. And I dont think think they have many/any oil wells there, so really they are not controlling the production.


Stop lying to us. All I did was a simple google search... Your argument is BULLCRAP... "they are all profitable" Don't take this the wrong way but a little research will do wonders for your credibility

http://news.bbc.co.uk/2/hi/business/10419371.stm [India to cut subsidies]

Subsidy and corruption in the Indian petroleum industry
http://www.monstersandcr...dian_petroleum_industry

"The government-owned oil companies are bleeding and the private companies find it difficult to survive. The government
is not allowing the oil companies to pass through the increasing cost of high crude oil prices. There is no urgency on the part of the government
or opposition parties to reform energy pricing policy."
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  | | Edit by user: Friday, June 25, 2010 8:28 PM | Reason: Not specified
Rahatupu
#30 Posted : Monday, June 28, 2010 4:30:18 PM
Rank: Veteran

Joined: 12/4/2009
Posts: 1,982
Location: matano manne
WE should look at South America and their experimentation on "pure capitalisitic" systems where regulation is nil. Conclusion massive economic failure of the economies and success of the multinational firms there. This is what we don't see because of our "ties" to exploitative KK, Total, Unga etc.

The case of petroleum and electricity deserve regulation. In any case monopoly in the former and cartels in the later are good enough reasons for regulation.
Back to top
  |
6 Pages<12345>»
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.