RUTO’s cheap cooking gas promise in limbo as it emerges the prices may go even higher despite removing the VAT – Look!

 

Wednesday, July 5, 2023 – President William Ruto’s promise to bring down the prices of cooking gas has been thrown into jeopardy.

This is after Kenya opted out of EAC Common Tariff that zero rates taxes on imported cylinders which is likely to affect Ruto’s promise. 

In a gazette notice, East African Community (EAC) stated that Kenya and Uganda opted out of the law that imposes zero taxes on imported cylinders, going for a 35 per cent import duty which is likely to increase cylinder prices, and by extension gas prices.

This means the cost of cylinders brought into the country will increase as importers pass the new tax to buyers. 

“Uganda and Kenya will suspend the application of the EAC CET rate of 0% on LPG cylinders and apply a duty rate of 35 per cent for one year,” the notice read in part. 

The new levies announced by the Chairperson EAC Council of Finance Ministers Ezekiel Nibigira will apply for the financial year with a new review expected in July 2024.

Ruto, in March promised to bring down the cost of cylinders to between Sh300 – Sh500 to increase uptake as the country transitions to clean and efficient cooking energy. 

Currently, a 6kg gas cylinder retails at Ksh2,800, which the new administration promised to reduce to about Ksh500.

The drop in prices was expected in June, but this is yet to happen.