Kenya: Maize Flour Prices to Rise on 10% Tax on Kraft Liner, Manufacturers Warn

By Wangeci Thuo

Nairobi — Kenyans are set for more pain as the prices of maize flour are expected to rise when the government plans to introduce a 10 percent tax on kraft paper.

The levy is contained in the Finance Bill 2023 that is before the National Assembly.

Kraft liner is a packaging paper that is used to package staple foods, among other products.

"The proposed levy will have a direct negative impact of increasing the cost of packaging Unga," the Kenya Association of Manufacturers (KAM) said in a statement.

"This will increase the cost of unga for consumers and comes at a time when mwananchi is unable to put up with the inflated cost," KAM added.

This comes at a time when maize flour prices are above the roof and most Kenyans are voicing their anger.

Currently, a two-kilo bag of Ndovu costs Sh189, Jogoo maize meal costs Sh208, Ajab maize flour costs Sh199, and Pembe maize meal costs Sh208.

Others are Soko Maize Meal, Sh207, and Raha Premium Kavagara, Sh262.

"Unga prices have started going down just as President William Ruto has assured Kenyans over the weekend. Prices have dropped to Ksh159 and Ksh 160, depending on the millers," State House spokesperson Hussein Mohamed tweeted earlier.

Additionally, the bill also proposes an excise tax of Sh5 per kilo on sugar, which will lead to exorbitant prices.

To note, a two-kilogram bag of Kabras now retails for over Sh420, meaning Kenyan households will have to dig a dipper into their pockets to access the commodity.

Sugar prices have been rising in the country amid low production attributed to a prolonged drought that has battered the country.

This article originally appeared on Capital FM.