+686 75126156 admins@commerce.gov.ki

Commerce Unit

The Commerce Unit provides updates on the current situation with price control formulation template and formulation process. It also provides analysis and findings when incorporating the new approved rates, with a view to expanding the Schedule of Prices in the future according to the new, island-based, approved freight rates. This is as an immediate measure to address the following key issues.

Key Issues:

Importers’ disputes against the current Price Formulation process. These result in frequent refusal and non-compliance by importers to the prescribed prices in the Orders. For example:

  • Price Formulation only considers freight costs from Tarawa to Arorae, leaving the costs to Kiritimati and the rest of the Line and Phoenix Group, Kanton and Banaba to be borne by individual importers;
  • Price Formulation also did not take into account the freight cost from Tarawa to individual outer islands in the Gilbert Group

How to address existing issues:

  • By expanding the Schedule of prices according to the new proposed freight rates by Individual Island in the Gilbert and Line & Phoenix Group OR
  • By expanding the Schedule of prices according to the new proposed freight rates by taking the maximum price by Districts: that is the Southern Gilberts, Northern Gilberts, Central Gilberts, and the Linnix Group.

Key Responsibilities:

  • Monitoring and enforcement of the Price control ordinance, weight and measures act and regulation.
  • Monitoring and enforcement of the price control ordinance and
  • Raising public awareness on outer islands and conducting compliance inspections.
  • Processing and dealing with complaints relating to price control.
  • Compiling and recording price control issues on database.
  • Survey and analysis of consumer complaints and issues related to price ceiling violations.
  • Dealing with Consumer Complaints and providing appropriate support and advice to address the issue.

Range of Acts/Law:

  • Prices Ordinance (Cap 75)
  • Measure and Weight 1984.

The list of price control commodities are listed under the Schedule to the Ordinance as follows:

  1. Flour
  2. Sugar
  3. Rice
  4. Baby food
  5. Tobacco (i.e. Irish cake and twist tobacco)
  6. Exercise books;
  7. Bar soap (i.e. bar washing soap)
  8. Mosquito netting
  9. Benzene
  10. Kerosene
  1. Oil No.50;
  2. Bicycle (i.e. adult bicycle)
  3. Battery

Schedule of prices:

The current Schedule of prices comprises only of wholesale and retail prices for two main Groups, the Gilbert and the Line & Phoenix Group.  Each group has a uniform price, such as:

  • the Gilbert Group includes Tarawa, Betio and all of the outer islands from Makin to Arorae; and
  • The Line & Phoenix Group includes Kiritimati, the rest of its islands including Kanton and Banaba.

Allowable costs: Costs which are allowed to be charged by a vendor or trader are based on the following: -

  • Invoice costs – Commercial invoice from supplier
  • Freight cost (Tarawa) – Bill of lading
  • Customs Duty & Import levy – Customs Entry Form
  • KPA Charges (Betio & Kiritimati ports) – KPA receipts
  • Bank Charges – TT receipts, etc
  • Side-lifter charges (Betio & Kiritimati ports) – receipts
  • Shared retail and wholesale profit margin – 25% Gilbert Group
  • Shared retail and wholesale shared a profit margin – 28% Line & Phoenix Group
  • VAT of 12.5% on both final prices in the Gilbert Group and the Line & Phoenix Group

How to contact the Commerce Unit

If you have any complaint about pricing and wish to make a complaint, please contact us directly and we will do our best to resolve it.

Please call us on our phone number 75126157/75126156 or email admins@commerce.gov.ki during working hours in order we can provide a helpful and efficient service at all times. Any complaints we receive are treated seriously and investigated immediately.


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