Finance Bill 2024: List Of 4 Taxes Proposed On Cooking Oil Manufacturers Warn Will Raise Prices

• The Finance Bill 2024 is currently undergoing public participation as Kenyans submit their memoranda on proposed tax measures
• Appearing before the National Assembly Finance Committee, the Kenya Association of Manufacturers raised issues with several tax proposals they say will negatively impact local manufacturing
• KAM chief executive officer Anthony Mwangi cited four taxes imposed on cooking oil, projecting a hike in prices by over 70%

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Kenyans and private entities continue to submit their memoranda on the proposed Finance Bill 2024 tax measures.

National Assembly Finance Committee commenced the public hearing process for the Bill on Tuesday, May 27.

If passed into law, the Bill is expected to collect KSh 302 billion to finance the fiscal year 2024/25 budget.

How taxes on cooking oil will affect Kenyans

The Kenya Association of Manufacturers (KAM) appeared before the committee led by Molo MP Kimani Kuria and raised concerns over the proposed taxes' impact on Kenyans and the economy.

KAM chief executive officer Anthony Mwangi noted that the Bill proposes four taxes on edible oil, which will see the cost of production transferred to consumers.

"The Bill has introduced four taxes on cooking oil, over and above seven others. This will raise cooking oil factory prices by over 70%, and the cost will be loaded on the final product in the shops. Therefore, 'Wanjiku' has to pay for it," Mwangi warned.

He revealed that what the government increases the burden to its citizens when it raises taxes.

"You do not tax a product or a company. What you do is to tax mwananchi because the levie becomes the cost of the product. This means many people will not be able to afford cooking oil," he said.

Which taxes are proposed on cooking oil

The Finance Bill 2023 proposes the imposition of the following taxes on edible oil, final product and the packaging;

• 25% excise duty on imported (Crude Palm Oil) CPO
• 25% excise duty on processed cooking oil with no offsetting mechanism
• 10% excise duty on plastic packaging
• Eco-levy of KSh 150 per kilogram or a 20-litre cooking oil jerrican.

What will be the new cooking oil prices?

KAM argued that these taxes will see the price of a litre of cooking oil shoot from KSh 300 to 468.

A 5-litre cooking oil will retail at KSh 2,340, up from the current price of KSh 1,500.

A 20-litre cooking oil price will increase from KSh 4,100 to KSh 6,396.

What to know about Finance Bill 2024

• Edible Oil Manufacturers Association of Kenya raised concerns over the proposed tax on cooking oil in the Finance Bill 2024, saying it will raise prices of household food products
• Other taxes proposed in the Bill are 2.5% of the value of motor vehicles and 3% withholding tax on goods supplied to public entities.

Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.