Beer Prices Spike as Treasury Directive Takes Effect

Last month’s directive by the treasury cabinet secretary Henry Rotich, on increasing the prices of beer, has now taken effect and alcohol users are going to pay more for them to guzzle.

East African Breweries Limited (EABL) is among the liquor retailers who have increased their prices in order to get in line with the annual inflation adjustment to be charged on excise commodities.

Local beers have increased by ten shillings with a 500 ml drink going at; Tusker Lager 160, Tusker Cider 170, Guinness Stout 180, White Cap Lager 170, and Balozi Lager 150. (the price unit is in shillings).

The prices of wines and spirits have also increased gradually where Smirnoff vodka, Triple Ace and Gilbey’s Gin have shared the price of 250ml and 350ml which have increased by 20 shillings and those of 750 ml has increased by 50 shillings.

Bond 7 whiskey will go at 410 shillings for 250ml,580 shillings for 350 ml and 1200 shillings for 750 ml. Captain Morgan Rum will go at 310 shillings and 810 shillings for 250 ml and 750 ml respectively.

The treasury CS had pointed out during his budget speech last month, that the prices of wines and spirits should be increased even further.

“Excise duties on alcohol and tobacco will be increased as follows: a 750ml bottle of wine will have an excise duty of Sh136, which is Sh18 more from the current rate; the duty of a bottle of whiskey will go up by Sh24 to Sh182 for a 750ml bottle. The excise duty on a packet of 20 cigarettes will increase by Sh8 to Sh61 per packet, “the CS said.

Mr. Rotich had proposed on hiking up the prices of commodities such as Cigarette, wines, and spirits, arguing that the inflation adjustment was not adequate to cover for the declining excise revenue.

Most manufacturers and distillers are yet to declare their prices.