Kenya's Tax Changes: Are Consumers Paying More?

Kenya's Tax Shake-Up: Hidden Costs and Public Impact Kenya recently implemented changes to its tax system, reclassifying certain products from zero-rated to VAT-exempt. This seemingly minor adjustment has significant implications, as explained by political economist Billow Kerrow in a recent interview on Spice FM. "The government will tell you very smartly that, look, there is no tax on zero and exempt, there's no difference," Kerrow stated. However, he argues that this is misleading. The shift allows businesses to avoid passing on VAT savings to consumers, resulting in higher prices. For example, Kerrow illustrates how the change impacts the pharmaceutical sector and fertilizer industry, ultimately affecting the cost of essential goods. The discussion highlights the need for more transparency and public awareness of the true impact of these tax changes.