The government is set to miss out on billions in tax revenues from the alcoholic beverage sector, driven by lower sales, if a proposed policy on alcohol consumption becomes law.
Manufacturers argue that the policy by the National Authority for the Campaign against Alcohol and Drug Abuse (Nacada) will shrink alcohol sales in formal outlets, thereby reducing tax revenue. "There is no way to collect tax from illicit traders.
This policy will drive more people towards illicit alcohol," said Eric Kiniti, Corporate Relations Director at East African Breweries Ltd (EABL) and Secretary of the Alcoholic Beverages Association of Kenya (Abak).
Thousands of Kenyans working across the alcohol value chain could also be rendered jobless in the near future if Nacada's recommendations are adopted.
