Kenyan residents living near the borders with Tanzania and Uganda may find it more affordable to purchase beer in those countries due to recent price reductions on excise stamps.
Tanzania has implemented a second round of excise stamp price cuts, lowering the cost of producing beer in the neighboring country. Meanwhile, Kenya plans to double its excise stamp prices to offset a debt owed to the stamp manufacturer, SISCPA.
In Uganda, beer producers will pay significantly lower excise taxes compared to Kenya. The excise duty on a liter of malt beer made from local raw materials is set at 30% or Sh45, whichever is higher.
As a result, Kenyan beer manufacturers now pay up to four times more in excise taxes than their Ugandan counterparts. Excise taxes account for approximately 50% of the cost of beer in Kenya, compared to only 27% in Uganda.
In Tanzania, excise taxes will comprise about 36% of the total cost of beer. The high excise taxes in Kenya have been a major factor in driving up beer prices.