Kenyans will have to pay more to enjoy their favourite fast food, French fries commonly known as chips, following the implementation of the Finance Act 2022.
The Act proposed an amendment to the Excise Duty Act (2015) to include imported potatoes in the list of items to be taxed.
Food franchises that ship their potatoes will now pay 25 per cent duty for imported products.
"Inserting the expression “and imported potatoes of tariff numbers 0710.10.00, 2004.10.00 and 2005.20.00” immediately after the expression “07.01” appearing in the tariff description “Imported potatoes, potato crisps and potato chips of tariff heading 07.01," reads the Act in part.
This will see businesses increase the cost of chips to maintain profit margins or alternatively reduce the quantity per serving.
The law takes effect months after a popular fast food outlet announced that it was halting serving French Fries after they ran out of stock of imported potatoes. However, the anomaly was later corrected and the popular delicacy returned to the menu.
While it is the practice of international franchises to source their products from a common market so as to maintain the same quality, Kenyans questioned why the firm could not source their potatoes locally.
Consequently, the government stepped in to discuss ways in which the fast food operators can liaise with farmers and get their supplies locally.
Other food and beverages affected by the Act include imported sugar confectionery, white chocolate and fruit juices, which will be levied at Ksh13.30 per litre.
Wines will also shoot up after attracting Ksh229 excise duty per litre up from Ksh208.20 while spirits with an alcoholic rate of 6 per cent will also see a price spike to Ksh335.30 of excise duty per litre from Ksh278.70.
Also affected is beer which has attracted a rate of Ksh134 per litre from Ksh121.85. Tobacco will also go up as its excise duty was raised from Ksh1,500 to Ksh3,750.
