Kenyans may soon have to pay more for diapers and sanitary pads. The government is planning to change how these products are taxed, which could lead to higher prices.
Currently, diapers and sanitary pads are “zero-rated,” meaning they don’t attract Value Added Tax (VAT). This makes them more affordable for consumers.
However, the government is looking to move these items to a new category called “exempt”, if the Tax Laws (Amendment) Bill, 2024, sails through. The Bill has been introduced by Treasury Cabinet Secretary John Mbadi.
While exempt goods don’t have VAT, manufacturers can’t claim back the tax on the materials they use to make the products. This means manufacturers will likely raise prices to cover the extra costs. This plan is part of the government’s proposal under the Eco Levy, aimed at charging taxes on products that harm the environment.
In the past, there have been similar changes affecting other products like pesticides and fertilizers, which are also likely to get more expensive. The government’s reason for the change is to reduce the tax relief it gives to certain items.
However, many Kenyans are unhappy with the proposal. They argue that products like diapers and sanitary pads are already too expensive and this change will make life harder for families.
In June, the government announced this plan, but it was paused after public protests.
In July, President William Ruto withdrew a broader Finance Bill after widespread outrage. But now, parts of that bill, including changes to the tax on sanitary pads and diapers, are making a comeback.