Kenyans are in for more bad news, as the government announced an increase in taxes that will force them to dig deeper into their pockets to afford prices of variety of essential items ranging from beverages to fuel.
President Uhuru Kenyatta signed numerous acts on Tuesday, June 21, including the controversial Finance Bill 2022, which went into effect on Friday, July 1.
According to the Finance Bill 2022, the following is a list of products that will increase in prices beginning today.
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Price Increase
1. Beverages
The price of beverages like beer, juice, and wine is going to shoot.
Wine prices will increase under the Finance Act 2022, with an excise levy of Ksh229 per liter, from Ksh208 Spirits.
A 6% alcoholic content will also increase in excise tax to Ksh335 per liter from Ksh278.
Beer has also seen a price increase, rising from Ksh122 to Ksh134 per liter.
Tobacco’s excise charge was also raised from Ksh1,500 to Ksh3,750.
In addition, the new law levied a 40% excise tax on electronic cigarettes and other nicotine delivery devices.
Liquid nicotine for electronic cigarettes will now be subject to a fee of Ksh70 per milliliter.
2. Fuel
Beginning July 14, the National Treasury indicated that the subsidy that has kept the price of petrol per liter bearable is likely to be abolished.
Petrol, which presently costs Ksh159 (up from Ksh150), is anticipated to exceed the Ksh200 level in line with worldwide rates.
Diesel and kerosene are also anticipated to follow suit, raising the cost of production across numerous industries.
3. Mobile Phones
All phone prices are expected to rise from today July 1, if the state begins imposing a 10% duty on all imports.
The Finance Act 2022 states in part; Excise duty on the importation of cellular phones shall be at 10% of excisable value.
Furthermore, the new regulation imposes a Ksh50 fee on every ready-to-use sim card.
4. Imported products
Imported product prices will increase following the announcement of a triple-cost of importation fee that began earlier this year.
Imported sugar confectionery will be taxed at Ksh40 per kilogram, while imported white chocolate will be taxed at Ksh242.
5. Advertisement
The state is also raising the charge of advertising on all platforms, including mainstream media, TV, print, and radio, as well as billboards, which will now pay 20% excise tax instead of 15%.
On the other hand, other items, such as bread and fertilizers, have yet to see price reductions.
