'59pc of alcohol in circulation nationwide is illicit,' Says ABAK Chair Githua

Alcoholic Beverages Association of Kenya (ABAK) Chair Eric Githua has given a damning assessment of the alcohol currently in circulation nationwide.

"We conducted an industry research last year in collaboration with the government and we realised that 59 percent of alcohol sold in Kenya is illicit; that's 6 out of every ten bottles," he said.  

Githua subsequently gave his two cents on the government's proposal to increase spirits excise tax to 79 percent as tabled in the suggested Finance Bill 2024.

While acknowledging the importance of paying taxes, Githua noted that the particular proposal was excessive. He further suggested staggering the increase over several years instead of implementing the full 79 percent raise all at once.

"There is a proposal to increase the spirits excise tax by 79 percent. It is a proposal we found quite wanting. Our request is that it be staggered. 79 percent is quite high at a go...can it be staggered across coming years?" he posed.  

"The current rate is Ksh.356 per litre of spirit and with the proposal it could translate to about Ksh.640 per litre. That is a big issue because we are making the paly in an area filled with illicit alcohol."

According to data from the National Authority for the Campaign Against Alcohol and Drug Abuse (NACADA) in 2023, a minimum of 4.7 million Kenyans between the ages of 15 and 65 use at least one narcotic substance.

Of these, 3.2 million either use or abuse alcohol, while 2.3 million use tobacco. Additionally, 1.7 million individuals consume a mixture of multiple drugs, and 964,737 and 518,807 others use Khat and cannabis, respectively.