KenyaMarkets

Car Batteries to Cost Ksh.9,000 More in Finance Bill 2024

Kenyan motorists are staring at a possible surge in accessory prices, heralded by some proposals in the Finance Bill, 2024 by the National Assembly.

Among the imminent cost escalations is the anticipated spike in car battery prices should the bill become law.

According to the Kenya Association of Manufacturers (KAM) during a media gathering on Wednesday, the Bill predicts a significant jump in the price of batteries by a staggering Ksh.9,000.

This represents a surge of 105% from the current price of Ksh.8,500, pushing the new cost to Ksh.17,500.

“Eco Levy will be detrimental to Mwananchi, as it will increase prices for all plastic packaging materials, batteries, and hygiene products,” said KAM CEO Anthony Mwangi.

Motorcycle Batteries Cost

Lithium-Ion batteries designed for motorcycles, averaging a weight of 13kgs, are poised to witness a 27% uptick, leading to a price tag of Ksh.46,750.

The rationale behind this surge is the inception of the Eco Levy, a novel environmental tax aimed at manufacturers and importers of selected goods to bolster waste management infrastructure.

Also Read: Explained: How Finance Bill, 2024 Will Hurt Kenyan Manufacturers

The levy’s primary objective is to fund Kenya’s sustainable waste management initiatives, facilitating the establishment of material recovery facilities and e-waste collection centers across the nation’s 47 counties.

As for the importation of Lithium-Ion solar batteries with an average weight of 60kg, the current price sits at Ksh.75,000.

However, with the enforcement of the Eco Levy, a whopping 60% increase will rocket the cost to Ksh.120,000.

Lithium Ion – Buses

Batteries tailored for buses with an average weight of 250kg, currently priced at Ksh.6,160,000, the Eco Levy, set at Ksh.750 per kilogram, will precipitate a 14% increase, Ppushing the price to a whooping Ksh.6,347,500.

Within the legislative framework of the Finance Bill, 2024, the Eco Levy is slated to encompass E-Mobility, Local Battery Manufacturers, and the Automotive sector.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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