For the past month prices of goods and services have been on the rise. But things seem to be looking up as Kenyan members of parliament have endorsed a proposal to lower the Value Added Tax (VAT) on liquefied petroleum gas from 16% to 8%. This come as a relief for most Kenyan households who turned to charcoal and kerosene since the price of gas has been on a steady increase.
The National Treasury reinstated the 16% tax in July 2021, causing the price of gas to rise. In March dealers increased cooking gas prices by an average of 15%. Rubi’s Energy Ltd announced the increase of refilling liquified petroleum gas cylinders further raising the price to all time hight.
This is not the only price that has been lowered, Sh7.05 billion subsidy has been issued by the National Treasury this will allow KPLC to cut down on electricity bills by 15%.
President Uhuru Kenyatta, the last Jamhuri Day celebrations directed power prices be lowered by 30%. Kenyans were set to receive 15% drop in the cost of power by January this year and another 15% in March. Only the first 15% was implemented thus the cost of buying a unit of electricity drop from Sh 25.9 in December to Sh21.8 in February.
Furthermore, Safaricom is set to be Kenya powers latest meter installer as the company struggles with money problems. These are but some of the ways the government is trying to reduce the cost of living. It is a start in the right direction, but the government still has ways to go. The country saw the coast rise to an all time high in April and May.