A LIVING BURDEN

 We need to brace ourselves for tougher times as economically things seem to be getting thicker.

It goes without a doubt that over-reliance on imports by the country’s manufacturing sector and rising production costs due to high taxes has left consumers paying for more for basic commodities.

In addition Kenya became vulnerable to global shocks and a weakening currency, causing importers to spend up to 90 per cent more to buy some products.

While last year we saw the greatest hike in prices for many products, the situation worsened this year as prices rose further by up to 50 per cent in six months, forcing some manufacturers to operate below capacity, while commodity prices shot to the highest levels in June.

 The 2020 Finance Act , signed by President Uhuru Kenyatta into regulation  recently, has raised excise tax on some items and services that are considered harmful, posh or morally suspect via a minimum 10 percent.

From 1st July 2022 Kenyan consumers dealt with higher charges of alcohol, juices, cosmetics among others because the government passed new taxes to fund this year’s budget.These taxes are going to affect the tax payers by making the cost of living expensive and decreasing any disposable income for households

The new taxes are geared towards partially elevating an extra 50.4 billion Kenyan shilling in revenue. This will add to a double-digit leap in food charges which have affected the cost of living to almost a five-year high.

Over the past three years, the cost of essential goods has risen, eroding our purchasing power and making it extremely difficult for many Kenyans to make ends meet.

This can be attributed to the impact of Covid-19, the Russia-Ukraine conflict, the election tension and the ever-increasing cost of commodities due to high taxes and new levies and fees.

The problem with our country is that the government is importing almost everything and there is no manufacturing in Kenya anymore, this is because about  95 per cent of the people who purport to be manufacturing under the ‘buy Kenya build Kenya’ motto are the same people who are importing products

The government needs to cushion Kenyans from the high cost of living as the consumer needs are more than the consumer income.

 

By Chartafai.