Kenyans face times ahead of the Christmas festivities as government effects new excise taxes on goods from Tuesday and rise in cost of living to 7.32 per cent in November from 6.72 per cent in October.
The country’s national Treasury has issued a circular allowing manufacturers effect higher taxes on beer, fruit juices, water, motorcycle and motor vehicle, with new rates expected to exert pressure on consumers’ wallet.
Latest inflation figures shows prices of food and non-alcoholic drinks rose more than prices of cooking gas, electricity and housing that declined over the last month.
Heavy rains pounding most parts of the country are also hampering transportation of food, with logistic costs set to take a hike even as crops face destruction in the farms.
From Tuesday, December1, 2015, Prices of Fruit Juices including grapes and vegetable juices will go up by Sh 10 per liter from current 7 percent on ex-factory selling price.
Similarly water and non-alcoholic beverages will attract Sh 10 from previous Sh 3 per liter.
Smokers will pay double per 1000 sticks that previously attracted Sh 1,200 to Sh 2,500-Electronic cigarettes would attract Sh 1,000 more to a new Sh 3,000 per unit.
A litre of beer will rise to a flat rate of Sh 100 from Sh 70 on those with less than 10 percent in alcohol strength.
Boda Boda operators will also find it hard to do business with a unit of motorcycle expected to attract Sh 10,000 more in taxes.
Government seeks to raise additional Sh 25 billion to support its Sh 2.1 trillion budget.