More taxes on alcohol to push people to illicit brew, says KBL

During his submissions before the Finance Committee, Mr. Musinga stated that the government will have imposed a total excise tax increase of 45.47% and 55.47% for beers and spirits respectively.

He added that the increase in taxes is unprecedented hence the concerns of the unintended consequences of passing all this to consumers.

“We have seen a decline in consumption of beer and this is because it has become more expensive and at the same time pushed more Kenyans to illicit brews,” said Mr. Musunga.

KBL says the business has suffered significant because of cost inflation escalation on raw materials and fuel.

We have had to increase our buying prices of barley and sorghum to cushion our 47,000 farmers who have been impacted by escalating prices of fertilizer.

Further, the media owners association has faulted the move by the National Treasury stating that the imposition of 15% excise on alcoholic beverages, betting, and gaming amounts to double regulation and double taxation with serious economic and social implications for the media industry.