This archive report was first published on 15 June 2020.
As the COVID-19 pandemic continues to ravage Kenya, the country's residents are facing another economic blow with the introduction of new taxes on various goods, including fuel, beer, and bottled water.
The Kenya Revenue Authority (KRA) has imposed a 5.5% increase in excise duty on over 31 goods, effective July 1st, 2020, which will lead to a spike in retail prices from next month.
Super petrol will see a price increase of Sh1.16 per litre, with the excise duty rising to Sh22.07 from the current Sh20.91. Kerosene and diesel prices will also rise by Sh0.60 per litre.
Other goods affected by the new taxes include spirits, wine, cigarettes, cigars, fruit juices, and motorcycles, which will see price increases ranging from Sh10.41 to Sh13.40.
The Treasury has justified the measures as a way to make up for revenue lost due to the COVID-19 crisis, which has covered only half of the Sh3.23 trillion budget for the year starting July.
