This archive report was first published on 16 June 2020.
On June 16, 2020, bar owners in Kenya expressed concerns over a proposed tax on keg beer, warning that it could lead to the loss of over 200,000 jobs.
The Treasury had proposed to slash excise duty remission on beer made from sorghum, millet, or cassava from 80 percent to 60 percent.
Bars, Hotels, and Liquor Traders Association secretary-general Boniface Gachoka stated that the Treasury should review the decision, as it would also lead to a resurgence of illicit brews.
‘A change to remission of 60 percent may be proposed and discussed after the pandemic lapses but for now, such a huge change would gravely harm the industry, negatively impact the economy, and lead to the resurgence of consumption of illicit brews,’ said Mr Gachoka in a statement.
The lobby group also claimed that cutting the remission rate would raise the production cost, resulting in a significant keg price increase, which would mainly affect low-income earners.
The proposed tax move has echoes of 2013, when the Treasury cut the remission from 100 percent to 50 percent, resulting in a resurgence of illicit alcohol.
When the remission was increased again in September 2015, fatalities arising from the consumption of illicit brew declined.
Council of Governors Agriculture Committee chair Muthomi Njuki also expressed similar concerns, stating that the changes would have adverse effects on farmers who cultivate sorghum and millet as cash crops.
