This archive report was first published on 5 June 2020.
Kenya Breweries Limited has contracted thousands of farmers in semi-arid areas of Tharaka-Nithi and Meru counties to grow sorghum, which is used to manufacture Senator Keg beer.
However, the Treasury has proposed reducing the excise duty remission on millet, sorghum, and cassava from 80 percent to 60 percent, which has sparked protests from the farmers.
According to Kenya Breweries Limited, the new regulation will increase the price of Keg beer by Sh10 per 300ml cup, leading to reduced consumption and a decrease in the quantities of sorghum bought from farmers.
Over 30,000 farmers in Tharaka-Nithi and parts of Meru County rely on the ready market provided by Kenya Breweries Limited, which buys sorghum at Sh32 per kilo.
Beatrice Nkatha, the coordinator of the farmers, said the government should consider the plight of vulnerable farmers in semi-arid areas and shelve the planned tax.
“We cannot understand why the government wants to destabilise a crop that is relied upon by vulnerable people in society. We have sent our memorandum to the government with a proposal that this tax should be shelved because it will lead to the collapse of the value chain,” Ms Nkatha said.
