This archive report was first published on 10 July 2019.
Kenya Breweries Limited has announced new prices for its beer brands, effective July 8, 2019, in response to the government's move to increase excise duty on beer and other alcoholic beverages. The new prices are as follows: Tusker Lager will retail at Sh160, up from Sh150; Tusker Cider at Sh170, up from Sh160; Guinness Stout at Sh180, up from Sh170; White Cap, Balozi lager, Smirnoff Ice Black Guarana, and Smirnoff Ice Black at Sh170, Sh150, Sh160, and Sh140 respectively, with a Sh10 increase each.
The price adjustments come after Treasury CS Henry Rotich announced an increase in excise duty on beer and other alcoholic beverages in the 2019/20 budget statement. Rotich stated that a 750ml bottle of wine would have an excise duty of Sh136, up from the current rate, and a bottle of whisky would go up by Sh24 to Sh182 for a 750ml bottle.
However, the move has been opposed by former National Campaign against Drug Abuse (NACADA) Chairman John Mututho, who argued that hiking the prices of genuine alcohol would encourage production and consumption of cheap illicit brew. Mututho recommended lowering taxes imposed on approved alcoholic drinks to make them more affordable and reduce the consumption of illicit liquor.
