Finance Bill 2024: Fertiliser prices to go up by Ksh.500, bread to cost Ksh.74

Kenyan citizens have been warned to brace for tough times as prices of consumer goods are set to go up should Members of Parliament pass the Finance Bill 2024 in its current form.

Various industry players who appeared before the Finance Committee for the first day of public participation called on the lawmakers to delete some of the clauses in their entirety while proposing amendments to some of the clauses contained in the Bill.

In its presentations on Tuesday afternoon, the Kenya Association of Manufacturers (KAM) detailed the cost implications of the proposed tax measures contained in the Finance Bill 2024 on consumer goods.

KAM warned that consumers will bear the heaviest brunt if the new Bill sails through without changes.

The manufacturers told MPs that their inaction on the Finance Bill 2024 will result in the cost of bread, for instance, going up from Ksh.65 to Ksh.74.

A litre of cooking oil will also go up from Ksh.300 to Ksh.316. 81. Consumers will also experience the price hike in 500 ml milk and all milk products.

A kilogram of powder detergent will also go up by Ksh.30 while a 50-bag of cement will increase from Ksh.760 to Ksh.773.63.

The Finance Bill 2024 also aims to collect billions from the eco-levy. For instance, a lead-acid battery weighing 12 kilograms is set to increase from Ksh.8,500 to Ksh.17,500.

Similarly, lithium-ion batteries for motorcycles will rise from Ksh.37,000 to Ksh. 46,000.

Lactating mothers will also face the impact; diapers, now included under the eco-levy, will experience a significant price increase.

Wheelbarrow tires will sharply increase from the current Ksh.700 to a new high of Ksh.1,700 while trolley wheels will see a price rise of Ksh.1,000 under the proposed tax measures.

People living with disabilities will also be affected; wheelchair rubber wheels will cost Ksh.1,000 more under the proposed amendments.

The industry players added that the Finance Bill 2024 is punitive.

"Let us not throw away what has been built for decades because of short-term goals. The Finance Act 2023 was a nuclear bomb; this is a tsunami," said a KAM representative.

The Fertiliser Association of Kenya, which also appeared before the committee, warned that farmers will be forced to pay Ksh.500 more for every bag of fertilizer under the proposed new tax regime.

Manufacturers and tax experts say the uncertainty and unpredictability in the country's tax policies are likely to shrink the manufacturing industry as investors flee to neighbouring countries.