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Friday, September 10, 2010

The Fall of Monopolies,Controversy and the Aftermath

Recently the president of Kenya signed a considerably controversial bill into law.The bill sought to legalize an illegal brew that defied first the British colonial State's efforts to stop its consumption ,and later two post--independence eras.

The late Jommo Kenyatta ,the first president of post-independent Kenyan State tried and failed.Former and retired president  Daniel Moi tried  to dissuade chang'aa drinkers from the habit through arbitrary arrests and other means but he,too,failed.The fines meted out on the brewers  proved to be a most hopeless deterrent..Besides, police officers sent to out to  raid chang'aa dens themselves drank what they should have nabbed.


So they were useless missions that then again bred income -generating ventures for the officers in the form of corruption..But arising from the legalization is an interesting phenomenon.The response is twofold.Professional brewers(so to speak)are crying fowl;drinkers are in celebration mood.
According to the brew law,chang'aa shall be packed in bottles and enjoy a similar market environment to that of popular brands here like Pilsner,Tusker Guiness,to name a few.There is a fine,too,targeting those who might contravene the regulations:5 years in jail or 10 million fine in Kenyan currency.The move,aside from everything else in the controversy,put to paid a disgusting brewing monopoly characterized by an increase in beer prices in abandon.Maybe the price of beer will come down  to a reasonable level.                                           + + + + +
                     A market-share war broke here recently.It was over  mobile- service- provider monopoly.Two major companies featured prominently in the battle field--Zain,Kenya and Safaricom.The trouble was the latter's serves over 78 per cent of Kenya's population that is now edging towards 40 million.Other companies share the remaining percentage.Zain deemed the fact unfair ,and in the absence of a fair business tact at the disgrunled companys disposal,the management of zain effected a shocking call rate slash.It brought the price charged for calls down by 50 percent.That was the only way to deal with Safaricom;all other methods had failed over the years.Although the attempted 'ouster' of a communications monopoly did not shake Safaricom much,it has succeeded in alleviating levels of subscriber  exploitation by both companies.A communications official says the battle will adversely affect business.We are yet to see that come to pass.But in the meantime,a monopoly is on its deathbed.                                                                                                   
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The part of Nairobi in which I stay,is entirely a residential area for indusry workers and all manner of middle-income earners.When you are atop a building you see the sprawling Mukuru kwa Njenga and Mukuru Kayaba slums.There are over 100 flats here and ten of the number belong to one person.Still seven others belong to one person.Tenants are at their mercy;rent is raised without consultation.Talk of monopolies.                       + + + + ++ +
    A friend of mine is angry at himself for deciding,on his friends advice in high school that to work in a bank, you must have your hand amputated so you cannot steal money.He dropped business studies .He learn t the truth after the fact.

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