Buzeki’s Empire Downsized as Fuel Tax Soars
Popular politician-businessman Buzeki Bundotich, chairman of Buzeki Group of Companies, announced on June 21 that he had taken drastic measures to shrink his trucking company.
Shortly after the approval of the fuel VAT increase by members of parliament, Buzeki issued a statement expressing his regret and acknowledging that the downsizing of his trucking company had become a necessary survival measure.
Members of Parliament had just passed a clause in the Finance Bill 2023 that increased the value-added tax (VAT) on petroleum products from 8% to 16%.
Buzeki’s removal of older trucks from the roads was a notable action he took in response to the circumstances.
This decision was prompted by their high rates of fuel consumption and the anticipation of future price increases in the coming months.
Buzeki elaborated on his plans, stating that the old trucks would be repurposed or sold at scrap yards.
In the meantime, Kenyans are preparing for the possibility of petrol prices exceeding Ksh200 per liter.
“Due to the increase in the value-added tax (VAT) on fuel from 8% to 16%, we are reducing our workforce with immediate effect,” Buzeki announced that all old trucks, including those with Euro 3 and lower, will be sent to the scrap yard.
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The businessman, who ran unsuccessfully for governor of Uasin Gishu in the 2022 General Election, hinted at acquiring electric lorries to sustain his transportation business.
Buzeki Group of Companies, founded in 1999, specializes in logistics and heavy commercial transportation in East Africa.
To establish a solid foundation for its various ventures, Buzeki Group diversified its investments into the dairy industry in addition to its transportation business.
Fuel VAT
Wednesday, legislators from Azimio la Umoja presented amendments to the Finance Bill 2023 insisting that the value-added tax rate on fuel should remain at 8%.
However, the opposition legislators were unsuccessful in convincing their Kenya Kwanza counterparts to halt the proposed increase to 16%.
Azimio contested the decision because it would increase the cost of living and further strain the transportation industry.
Kenya Kwanza, on the other hand, insisted that increasing the VAT was essential for President William Ruto’s administration to increase revenue, thereby enabling the government to carry out its mandate.
Ruto had previously defended the increase, stating that it will assist his administration in raising Ksh50 billion, which will be used to finance infrastructure development.
Buzeki’s Empire Downsized as Fuel Tax Soars
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