September Jets in Fast as Kenyans Are Left Scared of the Skyrocketing Cost of Living

The month of September is jetting in fast and Kenyans are a worried lot given what their beloved government has laid ahead for them in terms of taxes.

As the month comes knocking in Kenya, Kenyans are eagerly waiting for what might be the month that will go down in history as one where the cost of living became the highest.

The government through the National Treasury is determined to implement the 16 percent Value Added Tax (VAT) on fuel from as early as 1^st of September, a move that will see the already Kenyans’ empty pockets being torn further.

If the 16 percent VAT on fuel is implemented, residents in Nairobi will pay a record high of 131.93 shillings for every liter of super petrol, about 18.20 shillings more than the current price.

Diesel prices will equally go up by about 16.5 shillings to retail at around 119.77 shillings per liter. Kerosene consumers will also be hit hard as the price is set to leap by a whopping 13.7 shillings to retail at 99.44 shillings per liter.

As a last minute rush to try and save the common mwananchi from the pangs of heavy taxes, the National Parliament is planning to amend the law so that the 16 percent VAT on fuel can be ‘delayed’ for two more years.

MPs are seeking to amend the Finance Bill, 2018, to suspend the implementation of the new tax to 2020 to ‘cushion Kenyans from the high cost of living’ at the start of the month of September.

The 16 percent VAT on fuel was first introduced in 2013, but was given a grace period of three years and was supposed to come into force in 2016. In 2016, it was not implemented as the government feared a backlash from the public. It was moved to September 2018 and already the public is charged to oppose it.

Already public service vehicle owners have said that they will increase bus fares if the 16 percent VAT will be implemented. The cost of living is likely to increase as the cost of production for most of the goods will go up.