Former Uasin Gishu gubernatorial candidate and Businessman Ezekiel Bundotich alias Buzeki now says he has been forced to slash the number of freights active in his company following the rise in fuel VAT.
The National Assembly on Wednesday okayed the increment of Value added tax on fuel from 8 to 16 percent.
This, according to Buzeki, leaves them with no option but to cut operations to remain afloat.
"Due to the rise in VAT on fuel from 8 percent to 16 percent, we are now officially downsizing with immediate effect," he said in a tweet.
The businessman went on to accuse the Kenya Kwanza administration of lacking a plan for creating job opportunities.
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The tax increase, he insinuated, will cripple the job market and make operations difficult.
"The current administration seems to lack a plan for job creation and is solely focused on collecting revenue for expenditure. All old trucks, including those with Euro 3 and below, will be sent to the scrap yard," he said.
Members of Parliament on Wednesday voted to pass the proposed 16 percent VAT on fuel.
Some 184 MPs voted to increase the VAT from 8 percent to 16 percent, while 88 voted against it.
"We have the results on the division that clause 28 be part of the bill. 272 Members of Parliament took their vote."
This increase means that the price of fuel and consequently of other basic commodities are set to shoot up to a record high.
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