New Bill Seeks to Exempt 5 Basic Commodities From Taxes

A photo of Kenya National Assembly.
A photo of Kenya National Assembly.
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Parliament of Kenya

Former Presidential Aspirant Esther Waringa has formulated a Bill that she says will lower the cost of living by exempting 5 basic commodities from tax.

The Affordable Kitchen Bill seeks to repeal the Finance Bill and exempt the following items from tax; sugar, rice, unga, cooking oil, and Cooking Gas.

Speaking to journalists on Monday, Waringa highlighted that the decision is rooted in recognising the significance of these food items within Kenyan households, as they directly influence the overall cost of living.

She pointed out that the escalating costs of these commodities have disproportionately affected women across the country. With this bill, she intends to alleviate the financial burden on households and enhance the economic well-being of women.

County governors following proceedings of Devolution Conference at Eldoret, Uasin Gishu County on Wednesday, August 16, 2023.
County governors following proceedings of Devolution Conference at Eldoret, Uasin Gishu County on Wednesday, August 16, 2023.
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Council of Governors

Waringa emphasised that the bill has already been submitted to county governors for consideration and subsequent discussion in county assemblies.

“I urge the Senate and National Assembly to ensure that the Bill goes through,” she pleaded with MPs.

As the leader of a nonprofit, Public Service Governance, Waringa, a seasoned politician, elaborated that the Finance Act had imposed excessive burdens on Kenyans, resulting in a challenging and unsustainable quality of life.

She further asserted that her proposed Bill presents a better alternative to address the issue of the rising cost of living, compared to protests that the opposition has pursued.

Expressing candid concerns, Waringa disclosed her apprehensions regarding the potential challenges the Bill might face in the legislative process due to the complex landscape of Kenyan politics.

“We request the Senate and the National Assembly to avoid politicising the Bill so that when it’s passed into law, all these ladies here in Dagoretti, Kangemi, Kibera, Mathare, and the rest of the country will go all smiling to the kitchen”, she stated as she donated sanitary pads in Dagoretti, Nairobi. 

Current taxation of basic items

Under the provisions of the Finance Act, cooking gas was granted exemption from various forms of taxation, which encompassed an 8 per cent Value Added Tax (VAT), a 3.5 per cent Import Declaration Fee, and a 2 per cent Railway Development Levy.

As a result of the enactment of the Finance Act in 2023, the cost of gas experienced a significant decrease of 40 per cent during the month of July.

In regard to Cooking oil, the Treasury has put forth a proposition to eliminate the existing 35 per cent duty on edible oils, replacing it with a 10 per cent export and investment promotion levy on imported crude oil. However, the execution of this proposal has been temporarily halted pending the resolution of an ongoing legal case.

In June 2023, Mithika Linturi, the Agriculture Cabinet Secretary, informed Parliament that as a means to mitigate elevated food prices, the government had permitted the duty-free importation of sugar, rice, and maize.

A photo of a supermarket shelf in Kenya.
A photo of a supermarket in Nairobi, Kenya.
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HerBusiness

What the Law Says about a non-MP Presenting a Bill in Parliament

According to the Kenyan Constitution and Parlimantary Laws, a bill can come from; Senators, Committees of the Senate, the Executive, professional organizations, lobbyists or individuals. 

While the idea for a Bill may come from any person, a Bill must have a sponsor in order to be introduced in the Senate. The sponsor can either be a Senator or a Committee of the Senate.