The Kenya Revenue Authority (KRA) has moved in to cushion Kenyans from a possible increase in the cost of fuel amid the country's continually rising inflation

Speaking during a press briefing on Monday, October 3, KRA Commissioner General (CG) Githii Mburu stated that the Authority would not implement the 6.3 per cent inflation adjustment on excise duty charged on petroleum products.

Mburu disclosed that a Leaver Notice had already been sent out for publication to effect the same, explaining that a further increase in the cost of fuel would have a ripple effect on that of other commodities.

An Image of Car Fueling at a Petrol Station

FILE

"The only other category we are going to leave out are petroleum products because of the current high costs of fuel. We want to support Kenyans to ensure that that price does not go higher," the CG stated.

However, Mburu noted that the increased charges imposed on all other products will take effect on October 1, as announced in an earlier notice published by the taxman.

"We have given the Leaver Notice for publication. For all other products, we have made that adjustment, it is a requirement of the law and we expect that Kenyans will comply," he maintained.

The announcement by KRA has saved Kenyans since the September 15 monthly review by the Energy Petroleum Regulatory Authority (EPRA) showed that it had levied Ksh18 per litre for both super petrol and diesel.

Other commodities categorized as petroleum products include liquefied petroleum gas (LPG), petroleum jelly, motor oil, and synthetic rubber used in manufacturing tires, wax, and jet fuel.

Nonetheless, the prices of imported sugar, imported white chocolate, beverages, packaged water, fruit juice, wine, and toothpaste will be affected.

In addition, the revised tax will be imposed on imported sim cards, cigarettes, cigars, motorcycles, nicotine products, and other products manufactured using tobacco.

The pronouncement and application of the annual inflation tax is in tandem with the law that demands excise duty be revised upwards in line with the cost of living measure. 

According to a report by the Central Bank of Kenya (CBK),  Monetary Policy Committee (MPC) on September 28, Kenya's inflation rate had increased from 8.3 per cent in July to 8.5 per cent in August.