Beer price up Sh10 on inflation adjustments

Monday July 8 2019

EABL plant at Ruaraka

The EABL plant at Ruaraka in Nairobi. PHOTO | SALATON NJAU | NMG 

JAMES KARIUKI
By JAMES KARIUKI
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Beer drinkers on Monday started paying more for the tipple after East African Breweries Limited (EABL) and liquor retailers increased prices to accommodate last month’s directive from the Treasury on annual inflation adjustment for excise tax.

The second annual adjustment affecting the year starting July was set at 5.17 percent even as wines and whisky consumers await a 15 percent rise in excise tax on the Finance Bill passing into law.

Locally brewed beer prices have been adjusted upward by Sh10 with a half litre of Tusker Lager going for Sh160, Tusker Cider Sh170, Guinness Stout Sh180, White Cap Lager Sh170, and Balozi Lager Sh150.

A 330ml Smirnoff Ice Black Gaurana is selling at Sh160 and a 300ml Smirnoff Ice Black goes for Sh140.

Keroche Breweries on Monday said it was yet to raise prices of beer.

In a media notice Monday, Diageo-owned EABL liquor prices rose by between Sh20 and Sh50 for 250ml and 750ml bottles of various brands effective Monday.

The 250ml and 350ml bottles of Smirnoff vodka, Triple Ace and Gilbey’s Gin prices have increased by Sh20 while the same brands’ 750ml bottle has risen by Sh50.

Captain Morgan Gold Rum (250ml) will now retail at Sh310 with its 750ml bottle going for Sh870.

The Bond 7 Whisky lovers will part with Sh410 for a 250ml bottle, Sh580 for a 350ml container while 750ml bottle has risen by Sh50 to retail at Sh1,200.

Distilleries and wineries are budgeting for more pain after Treasury secretary noted in the Budget that the excise tax collection had fallen to two per cent, from three, as a percentage of the GDP from 2003/4 to 2017/18.

“Excise duties on alcohol and tobacco will be increased as follows: a 750ml bottle of wine will have an excise duty of Sh136, which is Sh18 more from the current rate; the duty of a bottle of whisky will go up by Sh24 to Sh182 for a 750ml bottle. The excise duty on a packet of 20 cigarettes will increase by Sh8 to Sh61 per packet,” he said.

Cigarette makers on Monday were yet to unveil their price revisions.