Paint prices set to increase due to recent kerosene taxes

[Photo: Courtesy]

Crown paints Kenya has said that the price of its products will increase by eight percent as from next week. This is due to a 10 percent increase in its production cost.

Retail price for paraffin has risen from Sh84.95 to Sh108.41 following the recent increase in price of adulteration of kerosene per litre to Sh18 as a result of imposition of recent eight percent value added tax. The move has made kerosene sell more than diesel which trades at Sh108.12 a litre.

Crown paint and other similar manufacturers mostly use kerosene as their primary raw material in the production of their paints making the rise in price of their products inevitable.

Crown Paints chief officer Rakesh Rao said, ‘’It has very serious impact on our operations and we have no other option but to increase our prices to consumers.”

Other products to experience a rise in prices include shoe polish, gloss paints, roof paints, varnishes, thinner and resins.

“Manufacturers of paints, resins and shoe polish have been hit with the anti-adulteration levy,” said chair Sachen Gudka of Kenya Association of Manufacturers.

The upsurge of prices of kerosene will have an impact in the housing developments, Jua Kali and furniture makers who use the product daily in their operations.

Sachen Gudka believes that by increasing the prices of kerosene, manufacturers of products which rely on the product as the main raw material will be discouraged from investing in the industry.