Demos rock Nairobi over food prices Updated Thursday, September 5th 2013 at 22:24 GMT +3(From Standard Digital News) By Caroline Rwenji Nairobi, Kenya: Public outrage over skyrocketing food prices spilled to the streets as protestors condemned the VAT Act. Members of the civil society Thursday demonstrated against the law, which was passed in August. The angry demonstrators spilled flour on Tom Mboya Street as they complained about the law the hike in food and commodity prices. They later assembled around the Tom Mboya statue where they expressed their displeasure at the rising cost of living blaming the Government for failing to protect the citizens. Unga Revolution activist Fredrick Odhiambo condemned the Government over the VAT 2013 Act and asked the public not to take the matter lightly. “The cost of milk, flour and even bread has gone up. What should common wananchi to do if they cannot afford a meal? We are opposing the new law and want the Government to reconsider this action,” he said. He echoed sentiments by the former Prime Minister and Coalition for Reforms and Democracy leader Raila Odinga who warned Kenyans to brace for tougher times ahead if the Jubilee Government does not rethink the new tax regime. The law, Raila said, will impoverish Kenyans and further hurt the economy if the VAT is not reduced from the current 16 per cent to 14 per cent. Maize flour “There is no doubt a chain reaction of prices will follow as costs of farm inputs increase and those who offer services to make the economy run put up their costs as well,” said the former Premier. By Thursday, the price of half a litre of milk had risen from Sh45 to 55 in supermarkets and Sh60 in retail shops. A spot check revealed that some supermarkets and retail shops had increased even prices of goods excluded from the list of items subject to the VAT law. Some retailers had unscrupulously and irregularly raised the prices of maize flour, rice, eggs, and vegetables. Customers have not taken the rise of prices lightly and are angered by the imminent high cost of living. A customer Mrs Esther Akumu lamented about the high prices stating that she could no longer afford milk for her children. Black economy “The Government has just invited malnutrition. The increase is too much for the mwananchi,” she said. Cofek also warned that the country runs the risk of turning to a black economy with less tax collection within a booming counterfeit goods market. National treasury Cabinet Secretary Henry Rotich has however appealed to businessmen not to exploit consumers. Treasury, which has previously been unsuccessful in pushing for amendments to the contentious law tabled the Bill, which has since been passed into law, in Parliament.
Posted on: Fri, 06 Sep 2013 10:14:14 +0000