Kenya’s food and other essentials prices are expected to rise on July 1, 2023, after a majority of Kenya Kwanza MPs used their parliamentary majority to support raising the fuel tax from 8% to 16%, as proposed in the Finance Bill 2023.
Out of the 272 MPs present and voting, 184 voted in favour of the petroleum tax, while 88 voted against it.
“If by any chance this clause becomes part of the bill and the VAT on fuel is increased to 16%, this will be the saddest day in the history of this country. If by any chance this Finance Bill is passed and it becomes an act of Parliament, that will mark the beginning of the fall of this regime,” Opiyo Wandayi, the leader of the Minority in Parliament said.
“You can’t have your cake and eat it. If you want good roads, money must come from somewhere,” reiterated the National Assembly Budget Committee chair, Ndindi Nyoro.
With increased VAT on fuel, other areas are bound to be affected. Prices of public transport are set to increase either by road or by air.
The price of commodities would increase due to the cost of transportation involved in the acquisition process.
This among all other sectors is bound to increase in cost.
Tough times are ahead for Kenyan Citizens following the increased VAT on fuel.
