Unga Prices to Go Up with Proposed 10% Kraft Paper Tax

An advocacy group has warned that if MPs pass the Finance Bill 2023, maize flour prices could rise in the upcoming weeks.

The planned 10% tax on kraft paper, according to the Kenya Association of Manufacturers (KAM), will increase the price of unga.

Standard foods are among the products that are packaged with Kraft liner, a type of packaging paper.

“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 occurs at a time when Kenyans are lamenting the high cost of maize flour, which has turned the staple meal into a luxury for most households.

Ndovu costs Sh189 per two kilos, Jogoo Sh208 per kilogram, Ajab Sh199 per kilogram, and Pembe Sh208 per kilogram.

Some alternatives include Raha Premium Kavagara (Sh262) and Soko Maize Meal (Sh207).

The bill additionally proposes an excise tax of Sh5 per kilo on sugar, which will result in sky-high costs.

A two-kilogram bag of Kabras is currently sold for more than Sh420.