CS Kuria Proposes 4 Reforms Set to Hike Alcohol Prices

Trade CS Moses Kuria speaking at a conference in Nairobi County on June 14, 2023.
Trade CS Moses Kuria speaking at a conference in Nairobi County on June 14, 2023.
Photo
Moses Kuria

Trade Cabinet Secretary, Moses Kuria, on Friday, June 16, proposed four reforms aimed at eradicating cheap and harmful liquor in the country.

Among the measures was setting the minimum price of liquor based on the production costs to eradicate the production of fake alcohol.

On the other hand, he underlined that his ministry recommended spirit manufacturers pay exercise duty instead of ethanol producers.

Should the proposal pass, the price of liquor will shoot as the manufacturer will seek to cover the production costs.

A photo of ethanol impounded by police in Tigoni on April 22, 2023.
A photo of ethanol impounded by police in Tigoni on April 22, 2023.
Photo
National Police Service

"Another alcohol reform my ministry is spearheading is the payment of 100 per cent excise duty by spirits manufacturers and not Ethanol producers to deter the rampant cross-border smuggling of ethanol.

"(We also advocate for) payment of Excise Duty at the cost to raise entry barriers in the industry," read the statement in part.

Kuria also detailed that the government would review the standards for ethanol use in alcohol manufacturing to limit excessive use.

In an earlier statement, the Trade CS claimed that rogue manufacturers were diluting ethanol with water for packaging.

With the trick, manufacturers sell their products cheaper than the required amount. According to the CS, 250ml wine and spirits should be sold at Ksh250 and above.

"I have sought the advice of the Standards Council on my imminent decision to suspend the Portable Spirts Standard (KS EAS 109: 2018), which is what is used to manufacture what is commonly referred to as ‘Second Generation’ drinks, which means you take ethanol and mix with water at 41 per cent," he stated.

The proposal by Kuria came in the wake of the ongoing nationwide crackdown on drug and substance abuse spearheaded by Deputy President Rigathi Gachagua.

While in Nakuru on June 16,  the DP provided relevant investigative authorities with names of individuals accused of running illicit alcohol manufacturing plants.

Deputy President Rigathi Gachagua speaking during the opening of Africa Real Estate Workshop in Nairobi on Thursday June 15, 2023
Deputy President Rigathi Gachagua speaking during the opening of Africa Real Estate Workshop in Nairobi on Thursday, June 15, 2023.
DPPS
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