Danger of price controls in a liberalised economy

Since the 1990s, Kenya has embraced a free-market approach that has spurred economic growth and attracted investment. Price controls, however, threaten to reverse these gains by imposing artificial restrictions on the market. Historically, price controls have led to shortages, black markets and underinvestment.

During Kenya’s era of price controls, long queues formed at shops selling basic commodities as consumers rushed to stock up before announcements of adjustments.