Proposed fiscal reforms seek to make menstrual products more affordable in Kenya
by Victoria Masaya
For millions of women and girls in Kenya, the cost of menstrual health products remains a monthly financial burden, with low-income households spending a significant share of their income to meet a basic health need. The high cost can make access to safe and appropriate menstrual products difficult, particularly for women and girls in low-income and hard-to-reach communities.
A new fiscal and regulatory reform proposal is seeking to address some of the costs behind these prices by closing taxation gaps, reducing unnecessary levies, improving access to tax relief and strengthening local manufacturing.
The report, commissioned by the Network for Adolescent and Youth of Africa (NAYA), was presented during a Media Café that brought together journalists and civil society organisations to discuss reforms aimed at improving the affordability and accessibility of menstrual health products in Kenya.
Making these products more affordable is not only a menstrual health issue but also an economic one. Reducing unnecessary costs could ease financial pressure on households, improve access to essential products and support an environment where women and girls can participate fully in education, work and other economic activities.
Closing the tax gap
Faith Masika, co-founder of Provital Dynamics Limited and a consultant who contributed to the development of the report, said the study sought to establish why menstrual health products remain expensive despite existing government tax exemptions and other relief measures.
The study identified several factors contributing to the high cost of menstrual products, including gaps in VAT exemptions, para-tariffs, inconsistent taxation and county levies.
Although menstrual products are VAT-exempt, manufacturers and importers still pay VAT on some raw materials because not all production inputs are exempt. These costs are eventually reflected in retail prices.
The study also found that para-tariffs, including the Railway Development Levy, Maritime Shipping Levy and Import Declaration Fee, add about six per cent to the cost of imported inputs. Many manufacturers are unaware of these charges before beginning the importation process.
Another concern is the lack of a uniform taxation system for menstrual products. Disposable sanitary pads are VAT-exempt, while reusable pads and menstrual cups attract VAT because of how they are classified. This makes reusable products more expensive upfront despite their potential long-term benefits.
“For example, the cheapest menstrual cup costs about KSh800, while disposable sanitary pads retail for between KSh50 and KSh80,” Masika said, noting that the high initial cost can make reusable products inaccessible to many consumers.
County levies also increase distribution costs, with manufacturers and distributors facing different charges as products move across counties. These additional costs are ultimately passed on to consumers.
To address these challenges, the report proposes reforms at low, medium and high ambition levels.
At the administrative level, it recommends improving tax awareness among micro, small and medium-sized enterprises so they understand applicable taxes, levies and compliance requirements.
It also recommends improving access to duty remission schemes and VAT refund procedures, which could help businesses reduce production costs and compete more effectively.
The report further calls for harmonisation of county levies so manufacturers can meet their obligations without facing additional charges as products move from one county to another.
“There is a County Revenue Bill currently before Parliament, and we hope it will be adopted because it has the potential to reduce the cost of distributing menstrual products across Kenya,” Masika said.
At the legislative level, the report recommends reviewing the VAT Act, 2016, to zero-rate key manufacturing inputs used in producing menstrual products. It also proposes reviewing the Miscellaneous Fees and Levies Act, 2016, which governs para-tariffs such as the Railway Development Levy and Maritime Shipping Levy.
Masika said strengthening local manufacturing could create jobs, increase supply and make products more affordable. However, she stressed that efforts to reduce costs should not compromise quality.
All locally manufactured and imported menstrual products must comply with Kenya Bureau of Standards (KEBS) requirements, she said.
“Every month, more than 17 million women and girls in Kenya menstruate,” Masika said, highlighting the scale of demand and the importance of ensuring menstrual products are affordable, safe and accessible.
She said implementing the proposed reforms will require evidence-based proposals to the National Treasury, while civil society organisations and the media also have a role in creating awareness about the factors affecting product prices.
Making affordability a priority
Victor Rasugu, Executive Director of NAYA, said the financial burden is particularly significant for low-income households.
He said households in the lower income quintile spend about 10 per cent of their income each month on menstrual health products, an amount he described as significant given their other basic needs.
“That amount is quite significant, given the other needs,” Rasugu said.
Distribution is another cost that affects the final price. Rasugu said different manufacturers spend up to around US$2,400 annually on distribution, with a daily charge of about US$0.24.
He said the proposed reforms should make it easier for manufacturers to claim input VAT and reduce the costs transferred to consumers.
“Part of the reforms we are looking at is how to make it easier for manufacturers to claim input VAT on menstrual health products and, ultimately, make these products affordable to the majority of girls and young women, especially those in hard-to-reach areas of the country,” he said.
Rasugu said the country also needs incentives that encourage more manufacturers to produce locally, while addressing production costs such as electricity.
He noted that Kenya already has manufacturers producing quality menstrual health products that meet global standards, giving the country an opportunity to expand local production and serve export markets.
“Beyond producing for the local market, we have manufacturers in the country with the capacity to produce menstrual health products for export,” he said.
However, affordability alone is not enough. Rasugu called for stronger public education on the different menstrual health products available, including information to help consumers understand which products may be suitable for different menstrual needs.
He also said reusable products require greater attention, particularly because their higher initial cost can discourage consumers despite their potential long-term benefits.
“These issues require fiscal reforms, but they also require educating the public,” Rasugu said.
He said the National Treasury is open to proposals if manufacturers, importers and social entrepreneurs can demonstrate their cost-benefit and explain how the proposed reforms would work in the short term.
Quality must also remain central to the reforms. Rasugu said government agencies, including the Competition Authority of Kenya and KEBS, have a responsibility to ensure products in the market meet required standards and provide value for money.
“We have to hold these agencies accountable and ensure that women in this country receive high-quality products that provide value for money and meet both local and global standards,” he said.
If implemented, the proposed reforms could reduce avoidable costs along the menstrual health product supply chain, support local manufacturing and improve access to affordable, safe and quality products.
For women and girls, lowering these costs could ease the financial pressure of meeting a basic health need. For Kenya, reforms that support a stronger local menstrual health manufacturing sector could also create jobs, increase supply and contribute to a more productive economy.
