The eco levy has been introduced in the 2024 finance bill and is to be put in place if the bill is to pass. The question is, do you as a Kenyan citizen truly understand this levy, its impact on your pockets, and its association with the IMF/World Bank? Well, I am here to break it down for you.
The IMF/World Bank introduced a new taxation to its borrowers, the eco levy is a tax placed on the movement of controlling waste management and saving the environment. The levy covers products such as diapers, sanitary pads, the majority of the packaging material, tires, mobile phones, and even televisions.
The levy will see Ksh 150 paid per 1kg of packing material. This will affect you as a consumer who buys diapers, bread, or cooking oil that is packaged in plastic. This will result in an addition of Ksh 150 per kg of packaging material used in your purchase.
The finance bill has been controversial due to the increment in prices that will happen once it is implemented.
The price increment does not stop at the Ksh 150 taxation of packages but is extended to phones that will be taxed 225 per phone, with even cement prices hiking by 57%.
The UDA government’s logo, the wheelbarrow, is not safe with tyres increasing in price. The prices of wheelbarrows are to hike from Ksh 700 to Ksh 1700 if the bill is passed.
Manufacturers will be affected by the cost, but not as much as you, the consumer. This is all because the taxation that will be imposed on manufacturers will be passed down to you, as they increase the price of their products.
