The government plans to introduce a 10% tax on kraft paper, a levy contained in the Finance Bill 2023 yet to be passed in parliament, which will cause a rise in the price of maize flour.
The paper in question is used as a liner in packaging of staple foods, especially flour.
“The proposed levy will have a direct negative impact of increasing the cost of packaging Unga,” the Kenya Association of Manufacturers (KAM) said in a statement.
“This will increase the cost of unga for consumers and comes at a time when mwananchi is unable to put up with the inflated cost,” KAM added.
Kenyans are currently experiencing high prices of the flour, awaiting President Ruto’s promise to lower them.
Currently, a two-kilo bag of Ndovu costs Sh189, Jogoo maize meal costs Sh208, Ajab maize flour costs Sh199, and Pembe maize meal costs Sh208.
Others are Soko Maize Meal, Sh207, and Raha Premium Kavagara, Sh262.
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“Unga prices have started going down just as President William Ruto has assured Kenyans over the weekend. Prices have dropped to Ksh159 and Ksh 160, depending on the millers,” State House spokesperson Hussein Mohamed tweeted earlier.
The Finance Bill 2023, yet to be approved, has sparked conversations, as Kenyans disagree with a few of the proposed levies, such as the 3% housing levy.
The bill also proposes an excise tax of Sh5 per kilo on sugar, which will lead to exorbitant prices.
