Time to Tame Inflation

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Time to Tame Inflation

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The Nation (Nairobi)

September 3, 2008

Editorial Article

The cost of living is spiralling out of control, even as experts debate the accuracy of inflation measures in Kenya.

Perhaps, the most worrying is food inflation, which has hit the low-income segment of the population hardest.

The maize staple particularly is of concern.

Granted, the situation could be temporary, coming as it is after the post-election violence, and vis-à-vis a massive crop failure. However, millers and commodity traders believe State intervention is needed to ease the price situation.

On Tuesday, we reported them asking for permission to import maize duty-free. According to the millers and commodity traders, there is little surplus in the duty-free Comesa region, meaning the commodity would have to be sourced from outside the trading bloc.

We wholeheartedly support any measures taken to reduce inflation, especially given its implications on our fragile political stability. If that includes temporarily suspending the 50 per cent duty, so be it.

However, this should only happen under the most stringent of controls to avoid a situation where imports depress the domestic cereals market.

Whether the National Cereals and Produce Board is the competent body to do so is certainly open to debate. But whoever gets the mandate, it should be under a strictly monitored regime.

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