Kenya Waives Tax on Essentials

27 April 2011

Nairobi — The Kenya Government has waived taxes on kerosene, maize and wheat in cut-back measures meant to ease the burden of escalating cost of living.

It also waived secondary school fees in drought hit areas as President Kibaki and Prime Minister Raila Odinga – who held a long meeting on Tuesday – assured the public they will reduce the stings of the high prices of fuel and food.

“The Government is seized with this matter and it has the capacity to deal with it,” Mr Odinga said as he announced a cocktail of measures that are being taken in response to the loud groans by the public, civil society and the clergy in the face of runaway prices.

The PM was categorical that the statement he read in Parliament was an outcome of extensive government consultations that he held with President Kibaki and concerned ministries.

He admitted that the consequences of the rise in the prices of fuel in the economy were becoming unbearable, prompting the measures that mostly targeted the low cadre in society and those living in areas hit by drought.

As a first measure, he said the government had done away with all taxes and levies on Kerosene to enable ordinary Kenyans light their houses and cook food at an affordable price.

“For immediate relief, the Government has removed all taxes and levies on Kerosene to reduce the cost of light and cooking energy,” he told MPs who seemed not satisfied with the measures that the government was prescribing.

The move, which he said will become effective next week, will further reduce the price of Kerosene by Sh5.66 per litre. And since the Treasury announced a reduction of Sh2 per lire of Kerosene last week, it means the total reduction is Sh7.66.

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