A preview of the upcoming finance bill for 2024 reveals that prices will soar beyond previous levels. Parliament passed the bill on June 13, 2024, and it will make the country’s economy untouchable for business owners or those who want to invest in the country.
Manufacturers have been crying over higher taxes on raw materials and business operations.
In 2024, the President William Ruto administration increased some taxes.
- Gamblers: Excise tax up from 12.5% to 20%
- Influencers: Advertising fees charged through the internet and social media are subject to a 20% excise tax.
- Mobile phone users: Excise duty on mobile and internet services increases from 15% to 20%.
- Alcohol: an increase in excise duty on spirits up to Sh720 per liter and wine to Sh270.
- Bread: The Sh150 levy per kg of plastic packaging will increase the cost of a 400-gramme loaf of bread by Sh9, from Sh65 to Sh74.
- Cooking oil: The Sh150 levy per kg of plastic packaging will increase a litre of cooking oil by Sh16.81, from Sh300 to Sh316.81.
- The Sh150 levy per kg of plastic packaging will increase one kg of detergent by Sh30, from Sh200 to Sh230, notwithstanding other charges.
- Battery: The price of a 12 kg lead-acid battery will rise from Sh8,500 to Sh17,500.
- Farm tools: wheelbarrow tyres will increase from the current Sh700 to a new high of Sh1,700, while trolley wheels will see a price increase of Sh1,000.
- E-cigarettes: The excise duty on liquid nicotine has increased from Sh70 to Sh100 per millilitre.
Other taxes include Motor vehicle tax paid at the rate of 2.5 percent on the value of the motor vehicle per year.
For suppliers will also be slapped with withholding tax on supply of goods to a public entity at a rate of 3% for locals and 5% for foreigners.