Food items have been exempted from the effects of VAT Bill 2012 that is currently in parliament for debate. Finance Minister Njeru Githae told Daily Nation on Tuesday 7^th August 2012 that the cabinet resolved to this move owing to pressure from the public. The Bill would have seen a 16% increase in food item prices.

This Bill comes at a time when the government intends to raise revenue to fund Vision 2030 infrastructural projects, which are aimed at transforming the nation into a medium level economy in the next 18 years.

The government is also keen to make the necessary amendments to exempt exercise books and seeds from the tax as well.