Manufacturers’ costs dilemma

KAM policy research and advocacy head Job Wanjohi. PHOTO | SALATON NJAU

Manufacturers are facing a hard choice over whether to pass on to consumers higher production costs brought about by electricity and fuel price increases, at a time when high inflation is already eroding demand for their goods.

The price of diesel was adjusted upwards by Sh20 per litre in the September fuel price review after the government partially wound back the subsidy that had held the cost stable in the previous review.

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Note: The results are not exact but very close to the actual.