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Consumer goods’ prices move up after an increase in the rates of excise duty

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The price of consumer products such as fuel, beer, fruity drinks, cigarettes, and sugar confectioneries is set to go up after the government revised the rate of excise duty on these products. The rate of excise duty charged on excisable goods is periodically adjusted for inflation as outlined in law in Section 10 of the Excise Duty Act 2015. The latest adjustment factors in the average rate of inflation for 2018/2019 which is 5.15 percent.

The excise duty on illuminating kerosene has jumped up from KSh10,305 to KSh10,835,70 per 1000 liters while the duty on diesel oil has moved from KSh3,700 to KSh3,890.55 per 1000 liters. The excise tax on motorcycles has moved up by KSh541 to hit KSh11,061 per unit from KSh10,520. Beers and other fermented beverages will now pay KSh110.62 excise tax per liter up from KSh105.20. The new rates took effect on 1st July 2019.

Following the increase in excise duty, Beer companies like EABL have revised their products’ prices upward by between KSh20 and KSh50.
It is the second time the rate of excise duty has been adjusted for inflation in the last seven months. In December 2018, the Commissioner General of Kenya Revenue Authority increased the excise duty on excisable goods by 5.2 percent as an adjustment for inflation.



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