Kenyans are likely to pay more for gas cylinders, further throwing President William Ruto's plan to bring down costs after the country opted out of EAC Common Tariff that zero rates taxes on imported cylinders.
The East African Community (EAC) on Tuesday, July 4 stated in a gazette notice that Kenya and Uganda opted out of the law that imposes zero taxes on imported cylinders, going for a 35 per cent import duty which is likely to increase cylinder prices.
This means the cost of cylinders brought into the country will increase as importers pass the new tax to buyers.
“Uganda and Kenya will suspend the application of the EAC CET rate of 0 per cent on LPG cylinders and apply a duty rate of 35 per cent for one year,” the notice read in part.
The new levies announced by the Chairperson EAC Council of Finance Ministers, Ezekiel Nibigira, will apply for the financial year with a new review expected in July 2024.
Ruto in March promised to bring down the cost of cylinders to between Ksh300-Ksh500 to increase uptake as the country transitions to clean and efficient cooking energy.
Currently, a 6kg gas cylinder retails at Ksh2,800, which the new administration promised to reduce to about Ksh500.
The drop in prices was expected in June, but this is yet to happen.
Ruto during a media roundtable in May explained that the delay had been occasioned by the tax policies adopted by the former government of President Uhuru Kenyatta in the just-ended financial year.
“We must first approve this in the budget. As of now, there is no way to waive the tax until a new budget is passed. June 1 is not possible until we pass it through Parliament.
“If we had passed it through the supplementary budget, June would be possible. But we tried to and it was not possible because it would force us to change a certain law,” Ruto stated then.
The move is likely to protect local cylinder manufacturers including East Africa Spectre— one of the biggest producers in the region— owned by opposition leader and Azimio chief Raila Odinga.
