Nairobi News


Why beer lovers could soon pay more for their favourite drinks

By Amina Wako April 22nd, 2019 1 min read

Beer-lovers could soon be forced to dig deeper into their pockets if the new tax proposal by Treasury is implemented in Kenya.

East African Breweries Limited (EABL) says it could increase prices of products if the Treasury implements a proposal to raise the corporate tax from 30 percent to 35 percent for firms with an annual income of more than Sh500 million.

Kenya Breweries Limited Managing Director Jane Karuku said the company could increase the prices of products by Sh 20 in order to counter the new tax measures.


“Increasing the tax base means we also have to pass some of it to the consumer. That is going to make Tusker bottle move from the retail price of Sh160 to about 180 because the 35 percent works on the whole total drinks,” Karuku said.

The Treasury, in 2018 introduced changes to the law where excise duty will now be reviewed annually, with the rate pegged to the average rate of inflation of the past year.