Alcohol prices are set to rise as Kenya Revenue Authority (KRA) adjusted its effective excise duty rate by five percent.
The reviewing of the prices which took effect on October 1, came with the annual adjustment of the rate for inflation.
The rate of excise duty levied on spirits exceeding six percent in alcohol strength is expected to rise to Ksh265.50 per litre from a previous Ksh 253.
This means that revellers will pay more for alcohol days after President Uhuru Kenyatta announced the reopening of bars.
KRA revealed that the new rate would be dictated by the inflation rate recorded in the 2019/2020 financial year as per data from the Kenya National Bureau of Statistics (KNBS).
According to KNBS data, Kenya's inflation rate moved from an average of 4.69% in 2018 to 5.2% in 2019.
The monthly Consumer Price Indices (CPI) and rates of inflation, for the February to July 2020 period averaged at 5.55% with February recording the highest inflation rate of 7.17%.
Excise tax is any duty on manufactured goods that is levied at the moment of manufacture rather than at sale. Excises are typically imposed in addition to an indirect tax such as a sales tax or value-added tax (VAT).
The adjustment also saw the prices of fuel rise with the pump price for super petrol in Nairobi increasing by Ksh 1.12 while that of diesel and kerosene increasing by Ksh 0.58 per litre respectively.
On July 8, 2019, a similar adjustment resulted in a 500ml of Tusker Lager retailing at Ksh 160, Tusker Cider Ksh 170, Guinness Stout Ksh 180, White Cap Lager Ksh 170, and Balozi Lager Ksh 150.
Uhuru while reopening bars called for caution to prevent a second wave of infections.
"The prohibition against the operation of bars and the prohibition against the sale of alcoholic drinks and beverages by ordinary restaurants and eateries shall stand vacated," he stated during a press conference on September 28, 2020.
