Kenyans might face tough hard economic times after a majority of MPs on Wednesday endorsed the proposed in the Finance Bill,2023 to have Value Added Tax(VAT) on fuel increased from 8%to 16%.

In what led to the approval of  fuel increase , as both Azimio MPs and Kenya Kwanza Mp’s clashed in the house, where 184 MPs voted for the increase against 84 who opposed the amendment, in what could see the cost of fuel rise by more than Ksh.10.

Azimio MPs who opposed to increase the VAT on fuel to 16% claimed that the move would greatly affect the cost of living.

Kitui Central MP, Makali Mulu who wanted a revision to have the clause on increasing VAT on fuel erased from the Finance Bill 2023, argued that anytime VAT of fuel increased, it resulted in higher cost of transportation, manufacturing.

Minority Whip Junet Mohammed said the Clause on increasing of VAT as the “most offensive” to Kenyans, warning that it could be a precursor of a revolution in the country.

“This is the most offensive in this bill. When you increase VAT from 8to 16% that is one thing that is going to make life very expensive for Kenyans,” said Junet.

The Minority Whip went on to accuse Kenya Kwanza government of lying to Kenyans by promising to fix the cost of fuel by reducing taxes.

Fuel Increase

Minority Leader Opiyo Wandayi also opposed to the recommendation stating that  increase to the cost of fuel would mark the saddest day in Kenya’s history.

He also overlooked an argument by the Chairperson of the National Assembly Finance and Planning committee Kuria Kimani that VAT on fuel should be increased to bring it to a par with other vatable products and services.

Budget and Appropriations Commitee Chairperson Ndindi Nyoro ignored any attempts by the minority side to oppose the proposal to increase VAT on fuel ,instead challenged them to offer other ways to raise revenue.

Majority Leader Kimani Ichung’wah admitted that fuel prices in Kenya would increase as a result of VAT increase but claimed the VAT will still be lower compared to other neighboring countries.

The National Assembly is currently considering several proposed amendments to the Finance Bill, 2023, before it is approved into law.

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