On May 29, 2022, sorghum farmers and beer distributors in Homa Bay, Kenya, petitioned lawmakers to reject a Finance Bill 2022 proposal that would raise taxes on beer and spirits.
The proposed tax hike, which includes a 10% increase in excise duty on beer, 20% on spirits, and 25% on locally manufactured glass, has sparked concerns among farmers and liquor distributors.
According to Stephen Odongo, Treasurer of the Bar, Hotels and Liquor Traders Association (BAHLITA) in Homa Bay, the taxes will lead to increased liquor prices, reducing demand and forcing more Kenyans to turn to illicit liquor.
“These taxes mean liquor prices will escalate. We will have very few people buying liquor from our business premises due to unaffordability,” Odongo said.
He also warned that the proposed tax on liquor advertisement will dampen their marketing efforts, saying, “If the government increases the taxes as proposed, our industry will sink with ripple effects.”
Local farmers, who rely on the beer manufacturing industry as a major market for their sorghum, are also opposed to the tax hike.
Lazarus Otieno, a farmer, argued that the excise duty on liquor will adversely affect them, saying, “The excise duty on the liquor will adversely affect us as sorghum farmers. We ask parliament to reject the taxation.”
