There is nothing to celebrate in Kenya this Christmas as Kenya Revenue Authority unapologetically increased taxes for ‘essential’ commodities.
Starting from Tuesday December 1 2015, Kenyans will have to pay more for petrol, bottled water and beer as the new Exercise Duty take effect.
According to the taxman, a litre of diesel will cost Sh 3.7 more. The new tax will also see a litre of petrol costing Sh 10.3 more.
Beer lovers were also not spared as KRA imposed Sh 100 tax per litre, while a litre of wines and alcohol beverages obtained by fermentation will cost Sh 150 more.
Second hand motor vehicles that are less than three years old from the date of first registration will attract a duty of Sh150, 000 a unit while those more than three years old will attract an excise duty of Sh200, 000 a unit
Motorcycles will also attract Sh10, 000 tax, which is bad news for the bodaboda industry.
The taxes will push inflation figure to the roof as many Kenyans depend on some of the goods whose prices will increase significantly.
This is a festive month when most people will be travelling up country. We expect prices from Nairobi to Western Kenya to increase by 100 %.Those who will be travelling to Kisii will pay Sh2, 500 and the fare from Nairobi to Mombasa is expected to increase by Sh500
