This archive report was first published on 24 October 2019.
The Alcohol Beverages Association of Kenya (ABAK) has called on retailers to adhere to the recommended retail prices of alcoholic beverages, citing instances of exaggerated pricing that may push consumers to illicit drinks.
ABAK chairperson Gordon Mutugi noted that despite well-spelt out prices, some retailers have increased alcohol prices in anticipation of the expected increase in excise rates, which are proposed in The Finance Bill 2019.
“Despite well-spelt out prices, that are often published in the media for all to see and adhere to, it is not uncommon to buy a bottle of your favourite product at Ksh140 in one part of town and find the same retailing at Sh500 in another location,” said Mutugi in a statement.
He added that this tactic may result in consumers accessing cheap and often illicit brands or commuting to look for fair prices elsewhere.
ABAK is currently awaiting a decision from President Uhuru Kenyatta on its appeal to scrap off some sections of The Finance Bill 2019 that propose to significantly increase excise rates on alcoholic beverages.
According to Mutugi, significant excise increases do not translate into anticipated increases in government revenues, as they incentivize higher levels of illicit trade and tax evasion.
