This archive report was first published on 26 October 2019.
As of October 26, 2019, the Kenyan beer market is facing a significant challenge. Beer from Uganda, sold at the Busia border, is priced at half the cost of its Kenyan counterpart.
This disparity has led to a surge in smuggling, with bar owners opting to import the cheaper Ugandan beer and sell it at the same price as the local product. However, this practice comes with a cost – bar owners are forgoing taxes or incurring losses.
A multi-agency team, comprising the Kenya Revenue Authority, the Anti-Counterfeit Agency, and the Kenya Association of Manufacturers, has been formed to tackle the illicit trade in Busia. However, the team acknowledges that the task will be challenging due to the significant tax rate differences between the two countries.
According to KRA regional surveillance officer Vincent Kimosop, the lack of harmonization in taxation regimes between Kenya and Uganda has led to an influx of smuggled alcohol, including some products that may not be safe for consumption.
Busia County Commissioner Jacob Narengo has taken measures to combat the issue, raiding bars and pubs weekly in the area. Meanwhile, KAM chief executive Phyllis Wakiaga has expressed concerns about the quality of smuggled products entering the Kenyan market.
