Uasin Gishu tycoon Bundotich Zedekiah Kiprotich popularly known as Buzeki, on Wednesday announced his next business move hours after members of parliament (MPs) approved the fuel VAT increase.

The MPs passed a clause on Finance Bill 2023, increasing Value Added Tax (VAT) imposed on petroleum products from eight percent to 16 percent.

In a tweet Buzeki who has heavily invested in the transport sector, said he will be downsizing his company to survive the looming tough business environment.

“Due to the rise in VAT on fuel from 8% to 16%, we are now officially DOWNSIZING with immediate effect. The current administration seems to lack a plan for job creation and is solely focused on collecting revenue for expenditure. All old trucks, including those with Euro 3 and below, will be sent to the scrap yard,” he stated.

The downsizing of trucks at his transport company means some workers will suffer job losses. Buzeki is the Executive Director and founder of Buzeki Group of Companies, a business conglomerate in Kenya.

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The company is a major player in the logistics and heavy commercial transportation. His fleet of trucks transports goods across the East African region creating employment for many individuals.

Fuel VAT

MPs on Wednesday approved the increase of fuel VAT from the current eight percent to 16 percent. Some 184 MPs voted in favor of the VAT increase, against 84 who opposed the amendment.

Azimio opposition coalition MPs, who largely opposed the proposal to increase the VAT on fuel to 16 percent, argued that the increase would push the cost of living higher given the higher costs of production, transportation, and manufacturing.

Kenya Kwanza, on the other hand, insisted that raising the VAT was key to raising revenue for President William Ruto’s administration to fulfill its mandate.