Kenyans may face increased costs for gas cylinders, casting doubt on President William Ruto's plan to reduce prices after Kenya opted out of the East African Community (EAC) Common Tariff that imposes zero taxes on imported cylinders.

In a gazette notice issued on Tuesday, July 4, the EAC announced that Kenya and Uganda chose to forgo the law that grants zero taxes on imported cylinders, instead opting for a 35% import duty, which is likely to raise cylinder prices.

As a result, the cost of imported cylinders will increase as importers pass on the new tax burden to buyers.

According to the notice, "Uganda and Kenya will suspend the application of the EAC CET rate of 0% on LPG cylinders and apply a duty rate of 35% for one year."

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The new levies, introduced by the Chairperson of the EAC Council of Finance Ministers, Ezekiel Nibigira, will be in effect for the current financial year, with a review scheduled for July 2024.

Back in March, Ruto pledged to lower the cost of cylinders to between Ksh300 and Ksh500 to promote the adoption of clean and efficient cooking energy as the country transitions. Currently, a 6kg gas cylinder retails at Ksh2,800, a price that the new administration had promised to reduce to approximately Ksh500.

The anticipated price reduction was expected to take effect in June, but it has yet to materialize.

In May, during a media roundtable, Ruto explained that the delay was due to the tax policies implemented by the previous government led by President Uhuru Kenyatta during the recently concluded financial year.

"We must first approve this in the budget. As of now, there is no way to waive the tax until a new budget is passed. June 1 is not possible until we pass it through Parliament. If we had passed it through the supplementary budget, June would be possible. But we tried to, and it was not possible because it would force us to change a certain law," Ruto stated at the time.

This decision is expected to protect local cylinder manufacturers, including East Africa Spectre, one of the largest producers in the region, which is owned by opposition leader and Azimio chief Raila Odinga.