Beginning September 1st 2018, 16% VAT was applied on petroleum products, sparking nationwide uproar. This tax on petroleum products was first proposed by the VAT Act (2013) and scheduled to kick in in September 2016. However, in 2016, it was postponed by another 2 years. Before the price increase, petrol was KES 113.73, diesel was KES 102.74 and kerosene was KES 84.95 in Nairobi. After VAT was applied on September 1st, the price of petrol became KES 127.80, diesel KES 115.00 and kerosene KES 97.41.
Kenyans are now paying 44% in taxes per litre of fuel. We're joined by Ramah Nyang, a journalist, to discuss this increase in tax and the effects it will have on Kenyans' lives. Press play!
Resources
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Kenya National Bureau of Statistics: Economic Survey 2018
Kenya National Bureau of Statistics: INFLATION TRENDS 1961-PRESENT
Kenya National Bureau of Statistics: Integrated Household Budget Survey
Kenya National Bureau of Statistics: Consumer Price Indices and Inflation Rates for August 2018
Kenya National Bureau of Statistics: Quarterly Gross Domestic Product Report First Quarter, 2018