Kisumu Bar Owners Association (BAHLITA) has opposed the proposed plan by KRA to increase excise duty on alcoholic drinks.
The members argued the move will encourage the consumption of counterfeit alcohol and illicit brews.
A proposal by the Kenya Revenue Authority (KRA) seeks to increase excise duty for beer, bottled water, fruit juices, berry and other fermented drinks by 6.3 per cent.
Speaking during a press briefing in Kisumu, BAHLITA Vice Chairman Erick Ogutu said that the proposed implementation will further hurt the sector which is struggling to recover from the effects of covid-19.
“As players in the alcoholic value chain we are opposed to any other price increase of public goods especially in the face of the current difficult economic conditions as we recover from the effects of COVID-19,” said Ogutu.
The members of the association claimed that 44 percent of the market share of alcohol consumed in the country goes to illicit brews which do not generate revenue for the government.
Accompanied by farmers from Kisumu, Ogutu said the taxes would result in an increase in prices that are likely to drive down demand for legal alcoholic beverages and affect the entire supply chain from farmers, transporters, manufacturers, distributors, bottle makers, consumers, and retailers.
In July, The Finance Act Bill which proposed to increase Excise Duty on beer by 10 per cent, on spirits by 20 per cent, and on locally manufactured glass by 25 per cent was passed.
The member now want the President to intervene and allow for further stake holder engagement before the excise duty is increased.
