This archive report was first published on 8 July 2019.
On July 8, 2019, the Treasury issued a directive on annual inflation adjustment for excise tax, which led to an increase in beer prices in Kenya.
East African Breweries Limited (EABL) and liquor retailers have increased prices to accommodate the directive, with locally brewed beer prices adjusted upward by Sh10.
A half litre of Tusker Lager now costs Sh160, while a 330ml Smirnoff Ice Black Gaurana sells for Sh160 and a 300ml Smirnoff Ice Black goes for Sh140.
Diageo-owned EABL liquor prices rose by between Sh20 and Sh50 for 250ml and 750ml bottles of various brands, effective July 8, 2019.
Prices of other spirits, including Smirnoff vodka, Triple Ace, and Gilbey's Gin, have also increased, with the 750ml bottle of Captain Morgan Gold Rum now retailing at Sh870.
Distilleries and wineries are bracing for further price hikes as the Treasury secretary noted that excise tax collection had fallen to two per cent, from three, as a percentage of the GDP from 2003/4 to 2017/18.
