The alcohol manufacturers through their organization, Alcoholic Beverages Association of Kenya (ABAK} have disputed the 15 per cent hike on alcohol and tobacco products saying that it will derail efforts to fight down illicit brew.
Gamblers were also with a 10 per cent excise tax on the amount they bet, a move that will automatically give the government a sizeable share of the billions of shillings that Kenyans have been staking in sports betting.
ABAK chairman Mr Gordon Mutugi in a statement said that the proposal by the financial CS affects the sense of predictability in the taxation of the alcohol and beverage industry thereby leaving the players uncertain in their business plans and investments.
The CS defended the tax increase saying that the government seeks to address the fall in excise duty revenue in the 2017/2018 fiscal year.
Treasury CS Henry Rotich said that the tax increases are intended to rake in the ex-chequer Sh37 billion in additional revenue.