E-Malt.com News article: Kenia: East African Breweries Limited denies allegation of benefiting from the removal of excise duty on non-malt keg beer

East African Breweries Limited (EABL) has denied allegations by Keroche Industries that the recent tax measures announced in the budget are meant to favour it.

UDV Kenya Limited General Manager, Josephat Ngile, says the increase in tax from Sh75 to Sh120 for a 750 millilitre wine bottle will impact on the entire alcoholic beverages industry.

“EABL will be affected by all the measures since it manufactures both spirits and beer,’’ says Ngile.

UDV is a subsidiary of EABL.

Ngile explained that the tax increase for malt beer and portable spirits has affected all players including EABL.

He says the removal of excise duty on non-malt keg beer in the budget was driven by the need to make drinks in this category affordable to Kenyans who consume illicit brews.

“Such illicit drinks have even caused death in some instances. We responded to this national concern by introducing Senator Keg which is a hygienic but affordable drink,’’ says the UDV boss.

He says that as a business, EABL supports the decision by the Minister for Finance to remove the excise tax on non-malt keg beer. ‘’We have already passed the benefit to our consumers by reducing the price of Senator Keg” he says.

He added that EABL welcomes fair competition in the low end market segment as Kenyans will benefit from more choices at affordable prices.


11 August, 2006