Kenyans Feel Pinch of Tax Increase On Petroleum Products

Fuel pump.
2 September 2018

As soon as news went round that the Kenya Revenue Authority (KRA) had effected the 16 percent VAT on petroleum products Kenyans started feeling the pinch.

Passengers who spoke to Nairobi News said that the effects of the new tax had started kicking in.

Many of them pleaded with Members of Parliament to come to the rescue of Kenyans.

"I have been forced to pay Sh1,000 and not the usual Sh800 for my journey to Kisii. This is very expensive for me," said Thomas Okemwa, a traveller.

On Saturday at exactly 2pm, at Githurai bus terminus in Ngara, touts promptly hiked bus fare from the normal Sh20 at to Sh40.


The touts could be heard loudly complaining about the added tax as they beckoned passengers to board the buses.

"Hapa hata kutaharibika zaidi weekdays. Lazima watu wajipange sasa (Things are going to worsen and it is time people start planning well)," Gabriel Kamau, a tout told Nairobi News.

He said that they had been caught unawares and their managers only asked them to increase fare by Sh20 until a review is made next week.

Boda boda riders in Nairobi also said that they will soon review fare to various destinations within the capital.

"We shall also charge extra because we are also here trying to make a living," said Walter Mose a boda boda rider.

The additional 16 percent tax has come to effect despite a move by parliament to suspend it till September 2020.

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