Manufacturers: Unga prices to go up with proposed kraft paper tax

The Finance Bill 2023, has proposed an additional 10 per cent levy.

In Summary
  • Kraft liner is a packaging paper that is used to package staple foods, among other products.
  • This comes at a time when Kenyans are complaining of costly maize flour, making the staple meal for most households a luxury.
A trader packages maize in Eldoret for sale at local markets
A trader packages maize in Eldoret for sale at local markets
Image: FILE

Maize flour could prices will go up in the coming weeks if MPs approve the Finance Bill 2023, a lobby has warned.

The Kenya Association of Manufacturers (KAM) said the proposed 10 per cent tax on kraft paper will push the unga prices up.

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 Kenyans are complaining of costly maize flour, making the staple meal for most households a luxury.

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).

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

Currently, a two-kilogram bag of Kabras now retails for over Sh420.

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

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