Mombasa, KENYA: Common mwananchi who depends on kerosene in his or her daily house chores will be the first one to be hit the hardest by the 2016/117 budget, as kerosene prices are set to rise by at least Sh 6 per litre.
This comes after Finance Cabinet Secretary Henry Rotich re-introduced exercise duty on the commodity on Wednesday, during the reading of the budget at parliament.
Speaking in Nairobi, Mr. Rotich said the move was primarily meant to deter oil marketers from adulterating petrol and diesel using kerosene.
Rotich emphasized that the adulteration of petrol and diesel using kerosene has denied the oil marketers business in the neighboring countries and giving them a bad reputation.
“Adulteration also negatively impacts car engines and increases their maintenance costs. In order to discourage this harmful practice, I propose to introduce excise duty on kerosene at Sh7,205 per 1,000 litres.” Said Rotich.
The duty was removed in 2011 to cushion low-income earners against high prices of kerosene since the cost of a litre of kerosene has been consistently more that Sh.30 cheaper.
However, as an act of trying to reduce the burden of having to pay extra for Kerosene,Rotich reduced the prices of stoves by lowering import duty on the products from 25 to 10 per cent.
Kenyans who use liquefied petroleum gas will be better off as it will now be cheaper. The commodity will be exempted from VAT, a move that could encourage poor families to switch from kerosene to gas for cooking.