This archive report was first published on 26 October 2019.
Published on October 26, 2019, a report by the Nation highlighted the issue of cross-border smuggling of beer from Uganda to Kenya.
The smuggling is attributed to a huge difference in tax rates between the two countries, with a half-litre beer bottle costing Sh200 in Kenya and Sh80 in Uganda.
Bars on the Kenyan side of the border have resorted to smuggling Ugandan brands to sell at a lower price, which is around Sh100 between Busia and Malaba.
A multi-agency team drawn from the Kenya Revenue Authority, the Anti-Counterfeit Agency, and the Kenya Association of Manufacturers acknowledged the challenge in dealing with the rising incidence of smuggling.
According to Vincent Kimosop, a KRA regional surveillance officer, the tax rate differences have led to an influx of smuggled alcoholic drinks, some of which are not safe for consumption.
Busia County Commissioner Jacob Narengo has been conducting weekly raids on pubs that stock cheap liquor, while the Kenya Association of Manufacturers has called for bridging the gap between the taxation regimes to tame the vice.
Phyllis Wakiaga, KAM chief executive, emphasized the importance of quality control, stating, “Because they are bringing it in illegally, you cannot even be in charge of the quality of what still ends up in the Kenyan market.”
