Food

Impact on Food:

Vegetable Oil:

• The Finance Bill 2024 proposed an excise duty of 25% on vegetable oil. Given its importance in the diet of many Kenyans, this measure was considered to have a significant impact on the affordability of essential food items​​.

Ordinary Bread:

• The bill included a proposal to impose a 16% VAT on ordinary bread. This would have driven up its price by at least the same percentage, affecting a staple food for many urban Kenyans and potentially exacerbating food insecurity​​.

Imported Sugar Confectionery:

• The proposal to increase the excise duty on imported sugar confectionery from KSh. 42.91 per kg to KSh. 257.55 per kg would have significantly raised the cost of these products, making them less affordable​​.

Committee Recommendations:

Vegetable Oil:

• The Finance and National Planning Committee recommended deleting the clause imposing the 25% excise duty on vegetable oil to prevent making essential food items unaffordable for a large segment of the population​​.

Ordinary Bread:

• The Committee agreed with the proposal to delete the clause imposing 16% VAT on ordinary bread. It was noted that such a tax would significantly increase the price of bread, negatively impacting food security and nutrition for children and vulnerable populations​​.

Imported Sugar Confectionery:

• The Committee recommended the deletion of the provision to increase the excise duty on imported sugar confectionery, acknowledging that it would make these products less affordable and potentially increase the consumption of unregulated or counterfeit products​​.