This archive report was first published on 26 July 2019.
Kenya's Alcohol Beverages Association of Kenya (ABAK) has cautioned bar owners and retailers against exaggerated price hikes on alcoholic drinks. The warning comes after the Kenya Revenue Authority (KRA) implemented a 5.17 per cent annual inflation tax adjustment on excise duty charged on the products.
According to ABAK Chairman Gordon Mutugi, some retailers have taken advantage of the inflation tax adjustment to overprice customers, making it difficult for them to enjoy their favourite drinks. He cited instances where a bottle of beer was being sold at Sh140 in one part of town and Sh500 in another location.
Mr Mutugi also pointed out that some retailers were raising prices per pack to gain more profit, despite manufacturers not increasing prices. He warned that this could push consumers to turn to illicit drinks.
A study commissioned by ABAK last year showed that increasing the price of legitimate alcohol had pushed drinkers to illicit drinks. Mr Mutugi emphasized the importance of offering a compelling price on alcoholic beverages to keep customers coming through the door.
Published on July 26, 2019.
