Manufactures slap a 9 percent price increase on goods over additional taxes
3 min read
Manufacturers raise basic goods prices by 9.2pc on higher taxes leading to a high cost of living
Manufacturers raise basic goods prices by 9.2pc on higher taxes leading to a high cost of living.
In the year leading up to June, manufacturers raised the prices of their products by 9.2%, underscoring the impact of the rising cost of doing business due to higher taxes and input expenses.
According to data released by the Kenya National Bureau of Statistics (KNBS) shows makers of food products such as maize µour, cooking oil, and bread raised their prices by 8.96 percent.
Companies that create beverages like juice and soda increased their costs by 16.07% during the time period, while companies that make chemicals had the biggest price increases of 44.05%.
The Energy and Petroleum Regulatory Authority (Epra) increased its tariffs in April, which resulted in an increase in power rates of up to 63 percent for some customer segments.
This tariff increase increased the supply of electricity and gas by 39.87 percent.
“Over the year, the industrial sectors namely: mining and quarrying; manufacturing; electricity, gas, steam, and air conditioning supply; and water supply, sewerage, waste management and remediation activities recorded varying changes in production prices,” said KNBS Director-General Macdonald Obudho.
The Producer Price Index (PPI) rose from 125.98 in June 2022 to 140.31 in June 2023.
Government breaks silence after Sudan hackers attack crucial state websites
Raila sets condition for him to hold talks with Ruto
Another coup in Africa as mutinous soldiers claim to have overthrown Niger’s president
Ruto snubbed Cyril Ramaphosa’s offer to mediate, Raila
Parliament questions quality of education in TVET institutions
Industrialists, under their lobby Kenya Association of Manufacturers (KAM), have been protesting over a hike in taxes such as excise duty and an increase in the cost of power, which had raised operational costs which are passed on to end users.
“Manufacturers have over time raised concerns over the high cost of electricity in the country, which impacts on the overall cost of production,” said KAM.
High commodity prices are also scaring customers away as they reduce demand due to the squeeze on their pockets.
“Firms widely reported a lack of purchasing power among customers due to high inµation and cash shortages. The overall fall wholly reflected weak domestic markets, as new export business rose for the fourth month running,” said the survey.
Inflation remained elevated at 7.9 percent last month driven by high food, fuel, and electricity prices, according to KNBS, reducing the purchasing power of consumers.
Also read,
Banks to be granted access to secret State database to monitor transactions
Sudan hackers targeting Kenyan Government sites amid the escalation of animosity
Shocker awaits employees as government plans to backdate new taxes in the Finance Act
Follow us
