The United Nations has called on governments to take firmer action against traders exploiting fear of the contagious Covid-19 to hike prices of essentials such as face masks, hand sanitiser and basic household goods.
The UN Conference on Trade and Development (Unctad), headed by Dr Mukhisa Kituyi, says the Covid-19 outbreak has opened floodgates for unfair, misleading and abusive business practices which have hit consumers hard and left the most vulnerable more disadvantaged.
The body cites Kenya amongst other countries such as Nigeria, India, France, Italy and Greece where cases of price gouging for essential hygiene consumer products has been on the rise, forcing competition watchdogs to act.
The United Nations has called on governments to take firmer action against traders exploiting fear of the contagious Covid-19 to hike prices of essentials such as face masks, hand sanitiser and basic household goods.
The UN Conference on Trade and Development (Unctad), headed by Dr Mukhisa Kituyi, says the Covid-19 outbreak has opened floodgates for unfair, misleading and abusive business practices which have hit consumers hard and left the most vulnerable more disadvantaged.
The body cites Kenya amongst other countries such as Nigeria, India, France, Italy and Greece where cases of price gouging for essential hygiene consumer products has been on the rise, forcing competition watchdogs to act.
“Misleading advertisements with false claims are also flourishing, ranging from products claiming to prevent COVID-19 infection to fake test kits. Financial fraud schemes soliciting false donations and using phishing techniques are also on the prowl,” Unctad said in a note late Tuesday.
President Uhuru Kenyatta in March warned retailers the government would take action on those found to have hiked prices by the Competition Authority of Kenya (CAK), terming the practice criminal and immoral.
Days earlier, the competition watchdog had ordered Cleanshelf Supermarkets to contact and refund customers had bought sanitiser at inflated prices.
“This crisis has triggered many unfair business practices and criminal activities. Firmer action is urgently needed to protect consumers,” Teresa Moreira, the head of Unctad’s competition and consumer policies branch, said in the statement.
The agency has recommended that authorities evaluate the viability of price caps for essential hygiene products such as masks and hand sanitisers, as well as setting up or enhancing market monitoring initiatives on essential consumer goods to protect consumers.
Other recommendations to mitigate exploitations include enforcement action against excessive price increases or hoarding of goods, misleading and false claims.
Authorities have also been urged to “attend to the needs of vulnerable and disadvantaged consumers, particularly to ensure their access to essential goods and services, such as water, energy and financial services.”
Mr Kenyatta on Monday the Nairobi Metropolitan Service — now in charge of health, public utilities, transport services and urban planning — to expand provision of free water in slums.
The Treasury has also been directed to spend Sh2 billion recovered from corruption proceeds, and handed over by Ethics and Anti-Corruption Commission (EACC) and Office of Director of Public Prosecutions (ODPP) Tuesday, to support the poor and vulnerable in urban centres.
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