To the disappointment of alcohol harm experts Kenya’s government is poised to slash tax on spirits by 84%, cutting it from 500 shillings ($3.9) per litre to 80 shillings.
“The adoption of the low rate is…a big blow to efforts in addressing alcohol use and harms in the country,” Celine Awuor of the International Institute for Legislative Affairs, a Kenyan NGO, told Alcohol Review.
“Our proposal to parliament on this was not to reduce the rate, but instead increase it to 900 shillings per litre, or retain the 500 shillings per litre at worst.” The only positive adjustment in the bill was the removal of a tax concession given to local small brewers, according to Awuor.
The cut to spirits tax was done to “support manufacturers” said Treasury secretary John Mbadi. It came after alcohol industry lobbying to reduce alcohol taxes across alcohol categories, often on the premise that it would reduce the problem of illicit alcohol products.
The bill passed parliament on Thursday despite strong opposition. President William Ruto is expected to give his assent in the next few days. ■