This archive report was first published on 12 July 2019.
On July 1, 2019, the Kenyan government implemented a new excise duty rate, which has led to a substantial increase in the prices of consumer goods. The rate of excise duty is periodically adjusted for inflation, as outlined in Section 10 of the Excise Duty Act 2015.
The latest adjustment factors in the average rate of inflation for 2018/2019, which stands at 5.15 percent. As a result, the excise duty on illuminating kerosene has increased from KSh10,305 to KSh10,835.70 per 1000 liters, while the duty on diesel oil has moved from KSh3,700 to KSh3,890.55 per 1000 liters.
Motorcycles will now pay KSh11,061 in excise tax per unit, up from KSh10,520. Beers and other fermented beverages will also pay KSh110.62 in excise tax per liter, up from KSh105.20.
Following the increase in excise duty, beer companies like EABL have revised their products' prices upward by between KSh20 and KSh50.
