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Finance Bill: Product Prices Set to Shoot Up

Many Kenyans are upset by the high cost of living and the 2024 finance bill, which is expected to further raise daily expenses. If the bill is passed, prices of many goods will increase.

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For example, the price of your favourite alcoholic drink may double. Currently, a 250ml drink costs about Ksh 300, but if the finance bill passes, it could go up to about Ksh 700, representing a drastic increase of over 50%.

Parents of young children will also feel the pinch, as diaper prices are expected to rise due to the imposition of an Eco Levy on sanitary pads, diapers, and plastic packaging. This will make these essential items more expensive.

In addition, the cost of edible oil is expected to rise due to the introduction of excise duty on the raw materials used in producing palm oil, a primary component in edible oil manufacturing. Companies such as Bidco will also be impacted by the Eco Levy, which applies to most of the packaging used for their products. Another consequence that Kenyans will face if the finance bill is implemented is the increase in transaction costs when using mobile money. This will affect a large portion of the population as services like Mpesa are used frequently throughout the day.

One prevalent tax in Kenya is the motor vehicle tax, which requires owners to pay 2.5% of their car’s value annually. The government has struggled to fully justify this tax, with the KRA deputy commissioner stating that it is meant to ensure that those who evade taxes are held accountable.

Despite significant opposition from the Kenyan population, the government remains firm in its stance that these taxes will contribute to the country’s growth.

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