The Kenya Revenue Authority (KRA) has increased tax on at least 31 goods including beer, fuel, bottled water and juice rejecting firms’ petition to freeze the higher duty.
KRA raised excise duty on the products by 4.94 percent in line with the average inflation rate for the year to June, just days after reopening of bars following a lengthy Covid-19 lockdown.
The taxman published the new excise taxes in the Kenya Gazette last Friday, paving the way for manufacturers to adjust prices of the various goods starting October 1.Consumers will pay Sh6 more for a litre of beer and products with alcohol content not exceeding six percent while prices for spirits will rise highest at Sh12.50.
The taxman will now collect Sh265.50 per litre of spirit, Sh198.34 per litre of wine and Sh116.08 per litre of beer. A stick of cigarette will cost Sh0.16 more as the excise duty rose to Sh3.31 per stick from Sh3.15.