Thursday, June 22, 2023 – The effects of increasing VAT on petroleum products from 8% to 16% have begun emerging hours after President William Ruto’s MPs voted to double VAT on fuel.
Shortly after the approval of the fuel VAT increase by Ruto’s allied MPs, popular politician-businessman Buzeki Bundotich, the chairman of Buzeki Group of Companies, has announced drastic measures that will see several employees lose their jobs.
He revealed that he had embarked on a drastic action aimed at downsizing his truck business.
Buzeki expressed his regret in a statement, acknowledging that the downsizing of his truck business had become a necessary step for survival.
One of the notable measures taken by Buzeki in response to the circumstances was the removal of older trucks from the roads. This decision was motivated by their high fuel consumption rates, coupled with the anticipation of further price increases in the months ahead.
Buzeki elaborated on his plans, stating that the old trucks would be directed to scrap yards, where they would either be sold or repurposed. Meanwhile, Kenyans are bracing themselves for the possibility of petrol prices surpassing Ksh200 per litre.
“Due to the rise in VAT on fuel from 8% to 16%, we are now officially downsizing with immediate effect. All old trucks, including those with Euro 3 and below, will be sent to the scrap yard,” Buzeki announced.
Established in 1999, Buzeki Group of Companies, specializes in logistics and heavy commercial transportation within the East African region.
In addition to its transportation business, Buzeki Group diversified its investments into the dairy industry, aiming to establish a strong foundation for its various ventures.
Ruto has defended the doubling of VAT on fuel, saying it will help his administration raise Ksh50 billion, which will be used to fund infrastructure development.
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