This is why RUTO is hell-bent on increasing the prices of bread and cooking oil by introducing Eco Levy

 Wednesday, June 12, 2024 – The government of President William Ruto sought to justify why it has opted to introduce the controversial Eco Levy in the contentious Finance Bill 2024 that will raise the prices of bread and cooking oil.

Appearing before the Finance Committee, Environment Principal Secretary Festus Ng'eno explained that the levy was introduced to address concerns about waste management in the country.

He noted that the money collected from the manufacturers and importers would be used in environmental conservation initiatives.

The levy, therefore, targets products such as plastic packaging, smartphones, and diapers.

Consequently, owing to the inclusion of packaging, manufacturers warned that bread and cooking oil would increase by Ksh9 and Ksh16 respectively.

“The revenue generated from the levy is earmarked for such initiatives as putting up enhanced waste management systems, creating public awareness and education through nationwide campaigns, to support innovation and enhanced research and development in green technologies," he stated.

Additionally, initiatives such as tree planting and nationwide environmental campaigns will be implemented with the money collected from the imposition of the levy.

Further, the PS noted that the levy was not new and had been adopted by other countries such as Germany, Estonia, Ireland, Jamaica, Guyana, and Ghana.

According to the PS, the government will collect over Ksh50 billion through the imposition of the levy.

However, Members of Parliament poked holes into the programme with a section of the Finance Committee questioning what the levy was not proposed to be ringfenced as the Housing Levy.