Kenyans should brace themselves for tough times ahead as consumer basic product prices are set to exponentially rise following the increase in petroleum and electricity prices.
As Inflation accelerates, many low-income households will bear the burden of increased cost of basic commodities such as food, together with energy and manufactured products.
According to Manufacturers, if the government is unable to suspend some of the taxes and shield the sector from the rising cost of fuel, then consumers will be faced with high prices of commodities in the market.
“The government should consider eliminating or reducing some of the taxes on fuel while eliminating the subsidies,” Rajan Shah, the chief executive officer of grain milling firm Capwell Industries Limited, said.
On Wednesday, the Energy and Petroleum Regulatory Authority (EPRA), raised the fuel prices up to 18 per cent, with a litre of petrol rising up by Sh20.18 to retail at Sh179.3, diesel from Sh140 to Sh165, and kerosene soaring up by 15.6 per cent to Sh147.94.
Last week, the same energy body raised electricity cost by 15 per cent following adjustments on three pass-on costs, including fuel, forex, and inflation adjustments.
This implementation thereby means that consumers with Sh1,000, consumers on the over 100kWh tariff would now get 39.5 units of power, down from the 45.7 units.
Agricultural and industrial cost of production is also expected to rise with the increased cost of transportation and prices of feed expected to trickle down and result in the increase in the prices of food and manufactured goods and raise the overall cost of living.
Public transport operators have also voiced their concerns and warned of increasing fares. They urged the state to consider subsidies to the transport sector.
“This is a massive increment that cannot be cushioned, it’s not a cost any business can cover. We will have to increase fares equivalent to the rate at which fuel price has increased,” Matatu Owners Association National Chairman Simon Kimutai said.
Kenyans are further going to feel the pressure after Kenya Revenue Authority adjusted excise taxes for products regular and premium fuel, kerosene, and industrial diesel starting from October 1.