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    Why Ruto May Not Be Sworn in Even if He Wins

    READ: Did you know that the law now recognises Intersex children?

    Breaking: Judiciary fund operationalised 12 years later

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Kenyan Business Feed
  • Home
  • News
    Why Ruto May Not Be Sworn in Even if He Wins

    Why Ruto May Not Be Sworn in Even if He Wins

    READ: Did you know that the law now recognises Intersex children?

    Breaking: Judiciary fund operationalised 12 years later

    Rwandan’s in Diaspora Deposit Sh926 million

    Rwandan’s in Diaspora Deposit Sh926 million

    List of LG products that can be controlled and monitored via a mobile App

    Jiji Kenya Bags Two Awards on Safety and Classifieds Categories

    Jiji Kenya Bags Two Awards on Safety and Classifieds Categories

    Why IEBC Didn’t Print Special Ballot Papers for the Visually Impaired

    Why IEBC Didn’t Print Special Ballot Papers for the Visually Impaired

    Business Tycoon Eyeing MP Seat Caught Up  in Sh300m fraud Case

    Business Tycoon Eyeing MP Seat Caught Up in Sh300m fraud Case

    LG unveils 2022 Side-by-Side and Top Freezers Refrigerator Lineup

    LG unveils 2022 Side-by-Side and Top Freezers Refrigerator Lineup

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

  • Markets
    Rwandan’s in Diaspora Deposit Sh926 million

    Rwandan’s in Diaspora Deposit Sh926 million

    LG unveils 2022 Side-by-Side and Top Freezers Refrigerator Lineup

    LG unveils 2022 Side-by-Side and Top Freezers Refrigerator Lineup

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    Mdundo hits 20 million active users across Africa 

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

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    Agilitee Unveils Electric Car to Retail at Sh1.1Million

    More Than a Million Children to Benefit From Sh3.1 billion Program

    More Than a Million Children to Benefit From Sh3.1 billion Program

    BrighterMonday Bags Top E-recruitment Portal of the Year Award 2022

    BrighterMonday Bags Top E-recruitment Portal of the Year Award 2022

    Anti-Counterfeit Authority Names Dr. Mbugua Njoroge as CEO

    Anti-Counterfeit Authority Names Dr. Mbugua Njoroge as CEO

    Technology Sector Partners Launch Digital Talent Program

    Technology Sector Partners Launch Digital Talent Program

  • Real Estate
    Fanaka Real Estate Unveils Foundation to Support Charity Programs

    Fanaka Real Estate Unveils Foundation to Support Charity Programs

    HFC launches Ultimate Banking for Customers in Kenya and Diaspora

    HFC launches Ultimate Banking for Customers in Kenya and Diaspora

    Centum Re Debt Status Analysis As Of 30th September 2021

    Centum Real Estate Posts Sh650M Operating Profit For The Year Ended 31st March 2022

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    National Construction Authority Suspends Licences of 18 Contractors

    National Construction Authority Suspends Licences of 18 Contractors

    CCI Global, Gateway Real Estate Africa start Construction of new Contact Centre in Kenya

    CCI Global, Gateway Real Estate Africa start Construction of new Contact Centre in Kenya

    NEMA Re-Introduces Another Tax for Developers

    NEMA Re-Introduces Another Tax for Developers

    Centum Digitalizes Real Estate Sector

    Centum Digitalizes Real Estate Sector

    Superior Homes Launches Reward Program for Investors

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  • Tech
    Demand for Foldable Smartphones Projected to Increase in 2022

    Demand for Foldable Smartphones Projected to Increase in 2022

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

    BrighterMonday Bags Top E-recruitment Portal of the Year Award 2022

    BrighterMonday Bags Top E-recruitment Portal of the Year Award 2022

    Samsung Unveils New Foldable Devices

    Samsung Unveils New Foldable Devices

    Samsung Unveils 2022 Electronics Line-Up Packed With New Innovations

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    Nokia Adds more Devices to its 2022 Gadget Potfolio

  • World Business
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    Kenyan Lands Ksh 2.6 Trillion Construction Project in Saudi Arabia

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    Why Mercedes Benz is Recalling Their Old Models

    Why Mercedes Benz is Recalling Their Old Models

    Cold comfort awaits a springtime Davos

    Cold comfort awaits a springtime Davos

    Meet The Richest Man Who Can Fund Kenya’s Budget Alone for 10years

    Meet The Richest Man Who Can Fund Kenya’s Budget Alone for 10years

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  • KBF
    • All
    • Agribusiness
    • Banking
    • Insurance
    • Manufacturing
    • Opinion
    KenGen: How Dams Prevent Flooding – A Tale Of The Seven Forks Dam Cascade

    KenGen: How Dams Prevent Flooding – A Tale Of The Seven Forks Dam Cascade

    KBL Invests Sh76 Million In A National Consumer Promotion

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    LG unveils 2022 Side-by-Side and Top Freezers Refrigerator Lineup

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      Prioritize long-term energy cost reduction for sustained industry growth

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Is KRA to Blame For Deaths Caused By Illicit Brews?

by Neymar
July 13, 2022
in Health, Opinion
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Producers of counterfeit alcohol are equal to murders due to the health risks their beverages present all under the watchful eye of the tax man.

This is because we have no way of ascertaining how they are made and their exact composition.

However we cannot blame them for taking advantage of a ripe business opportunity that is driven by demand of the illicit brews due to the increase in price of legal alcoholic beverages that is caused by the inflated taxes imposed on alcoholic beverage manufacturers of local brands.  

Globally, it is estimated that 25% of all alcohol consumed is unrecorded, with a substantially high proportion amongst the lower and middle-income countries compared to those in industrialized countries. Approximately 30% of the alcohol consumed in Africa is illegally produced, and it is estimated that 80% of Kenyans consume these illegally produced alcoholic beverages which is due to the fact that it is cheap, easily accessible.

If we were to consider the negative health, socio-cultural, and economic impacts of illicit alcohol that are directly related to an increase in alcohol beverage excise taxes then our government and the tax man are too be blamed for the consequences.

Tax policies that have been implemented have remained inconsistent in curbing development of counterfeit alcoholic beverages.

For instance increased taxation on alcohol is essentially tied to the point of purchase, but in order for legal manufactures of alcoholic beverages to succeed and grow their business, the government should set up policies to reduce the current high excise taxes which would be more favorable for these businesses.

These would help increase in production and in turn grow the employment sector of our nation and in the long run result in more payment of taxes which would contribute to the growth of our economy.

In Kenya, the taxation policies make it one the highest taxed alcoholic beverages industry in the world current, with world class alcoholic beverages production countermeasures.

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Enforcement and laxity of control of alcoholic beverages from the point of sale and distribution has caused a national pandemic of illicit brews, the only countermeasure would be lowering alcohol excise taxes to boosts production of lower cost alcohol.

Some countries have created government monopolies in efforts to curb development and consumption of these dangerous beverages but it would be challenging to do this in the Kenyan context.

The illict beverages have become so sophisticated because of the irregular taxation policies in the alcoholic beverages sector as they have penetrated the supermarkets, restaurants, bar settings etc. Strategies such as limiting days and hours of sale, age restrictions, and increasing taxes are implemented but these have only driven the illict sector to record breaking levels.

These counterfeit beverages are either imported through cross-border smuggling or made locally through illegal backdoor sophisticated factories with state of the art machinery that operate without regulations and registration.

These illegal beverages are not standardized, therefore estimating the specific amount of alcohol an individual consumes is difficult.

The negative consequences of consuming illicit brews have been directly associated with production processes such as inadequate distillation or the contamination of the beverages.

Additives such as methanol, car battery acid, higher ethanol percentages and other substances are added to increase the levels of potency and speed up the distillation process.  

This in turn lowers cost of production with a result of lower costs for these illicit brews compared to recoded alcohol, legally produced alcohol and those with limited means and in low socio-economic status make up the highest proportion of consumers.

This is not an individual problem and the response calls for coordinated action involving all actors and state organs, including national intelligence, national police service, customs, tax authorities, not forgetting the health and regulatory bodies.


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]

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