The cost of cooking in Kenya is set to rise sharply following the introduction of a new tax. From July this year, Kenyans will pay Sh. 350 more to get cooking gas.
This follows the Finance Act that brought back value-added tax (VAT) on liquefied petroleum gas (LPG). This tax had been delayed for a year but will now kick off from July this year. “The effective date of the amendment is 1st July 2021. This means that the supply of liquefied petroleum gas will be subject to VAT at standard rate of 16 percent from 1st July, 2021,” the Kenya Revenue Authority said.
The 13-kilogramme cooking gas which retails at Sh. 2,250, will now increase to Sh. 2,610. The cost of the 6 kilogramme cooking gas which is selling at between Sh. 800 and Sh. 1,200 might hit between Sh. 1,150 and Sh. 1,550. The sharp rise in the cost of cooking gas will come at a time when Kenyans are already reeling from the pain of high fuel prices.
For example, the cost of petrol is currently Sh. 128 per litre while diesel is selling at Sh. 107 per litre. The two commodities were set to rise with petrol hitting historic highs of Sh. 132 per litre. However, the government went against the pricing mechanism and decided to retain the costs as they were in the month of March.