Kenyan Newspapers Review: Cost Of Cooking Oil To Rise By KSh 160 Per Litre, Finance Bill 2024

On Friday, May 31, the Kenyan newspapers reported on the impending increase in cooking oil costs that will further raise the cost of living.

The dailies also reported that the National Treasury wants to expand the tax base, hitting artisans and Pay As You Earn (PAYE).

1. Daily Nation

Kenyans will have to dig more into their pockets to buy cooking oil if a proposal to increase excise duty on edible oils in the Finance Bill 2024 passes.

The bill proposes to impose a 25% excise duty tax on raw and refined vegetable oils, which will increase the cost of a litre of the commodity by KSh 160. This means a litre of cooking oil will retail at over KSh 600.

In the past, manufacturers cited high global costs of crude palm oil, a 10% duty on packaging materials and a 2% levy imposed by the Nuts and Oil Crops Directorate as reasons for the high cooking oil prices.

Bidco chair Vimal Shah decried high taxation in Kenya, arguing it stifled manufacturing. He urged lawmakers to exempt them from taxes and stop frequently changing policies.

He warned that the prices will increase and manufacturers should not be blamed.

"This year, you have excise duty; next year, remove it," Shah pleaded.

2. People Daily

The government hopes to collect more revenue by widening the tax base in the 2024/2025 financial year.

Senior officials want to scrap tax incentives and reliefs given as exemptions.

The National Tax Policy published by the exchequer also wants to review PAYE every five years to allow progressive taxation.

Treasury also targets artisans and other players in the informal sector, noting they were characterised by poor record keeping and cash-based transactions.

3. The Standard

There are high expectations in Eldoret, as President William Ruto is set to elevate the town to city status.

Uasin Gishu governor Jonathan Bill said the conferment of the town to a city was long overdue.

"We are champions not only in athletics but also farming. Having a city status will see immense growth in Eldoret," Bii explained.

The North Rift's commercial hub will be the fifth Kenyan city after Nairobi, Mombasa, Kisumu and Nakuru.

4. The Star

The Law Society of Kenya (LSK) has opposed a bid by the Kenya Revenue Authority (KRA) to access M-Pesa and bank accounts of Kenyans as it seeks to nab tax cheats.

LSK argued that the proposal in the Finance Bill 2024 infringes on the right to privacy.

If the suggestion sails through, KRA will have unfettered access to bank and M-Pesa accounts as the taxman hopes to raise more tax revenue after missing the target.

"The proposal undermines the rights under Article 31 and Article 24 of the constitution," LSK president Faith Odhiambo stated in a memo.

5. Taifa Leo

Questions have emerged over the cost of President William Ruto's state visit to the US.

Ruto revealed he spent less than KSh 10 million to travel to the North American country, which was paid for by friends, but this raised concerns among leaders and Kenyans.

LSK president Faith Odhiambo asked Ruto to reveal who the friends were and explain if the payment was legal.

Former Ndaragwa MP Jeremiah Kioni accused the president of lying, claiming the trip cost KSh 200 million.

Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke