Men at a cross border drinking joint
Kenyans living along the border are now crossing over to neighboring countries for cheap booze amidst surge in crackdown on counterfeit liquor across the country.
The directive was issued recently by Deputy President Rigathi Gachagua calling for stringent penalties in a bid to curb the rise in alcohol and drug addiction especially among the Kenyan youths.
But seemingly undeterred by the ensuing melee, defiant youths are crossing over the border to enjoy their favorite drinks at cheaper costs.
Some youths are doing it in full glare of authorities knowing their way through the porous borders with the Kenyan neighbors.
Come for us Mr DP
A video that has gone viral shows a young Kenyan reveling in Ethiopia and even daring Mr Gachagua to “cross over and arrest” them.
“Gachagua…Gachagua sisi tunatoa Lock. You cannot catch us…here you can’t catch us. We are actually unlocking .We live in the border..now, we go in the morning , we unlock then we go back to Kenya, we lock…says they young man in the 35 second clip that has left tick tokers in awe.
Low prices across border
KTMN News has since established that the rising truancy among youths along the border have been occasioned by low price of the commodity continues to reduce in those countries.
The countries have lowered excise duty on all alcoholic products, relatively lowering the cost of booze.
Coupled with the strength of Kenyan Currency against her neighbors, this even makes it easier for Kenyans to spend extravagantly on drinking.
For instance, a notice by the Tanzanian Revenue Authority (TRA) dated February 5, 2024, implemented new lower electronic tax stamp prices, sending the prices of all alcohol including spirits, liquors, wines, beers and liquor into a nosedive.
The notice, according to (TRA) took effect in January 24, 2024.
“In accordance with Regulation 6 (2) of the Electronic Tax Stamps Regulation, 2018 the Commissioner General of Tanzania Revenue Authority (TRA) wishes to announce new prices (fees) for tax stamps following the successful completion of negotiations involving Tanzania Revenue Authority (TRA), Confederation of Tanzania Industries (CTI) and the vendor SICPA SA,
“The manufacturers, producers and importers of excisable goods listed in the First Schedule of the Electronic Tax Stamps Regulation, 2018 shall purchase stamps from the vendor (M/s SICPA Tanzania Limited,” the notice read in part.
Excise taxes will take about 36 percent, or Ksh43.26, of the total cost of beer in Tanzania following the publication.
Same to Uganda, beer producers pay Ksh83 for every liter, attracting an excise duty of 30 percent or Ksh45 per liter, whichever is higher.
High cost on Excise Duty
Back here in Kenya, over half of the beer cost, about Ksh97, goes to excise taxes increasing the cost of beer and alcohol in the country.
This means that Kenyan manufacturers pay more compared to the two countries, contributing to the higher prices of alcohol in the country.
In November 2023, to address the high prices of the stamps, the National Assembly Departmental Committee on Finance and National Planning, made three recommendations to enhance tax reforms.
The committee suggested setting an ideal excise duty rate that would be reviewed every three years. This rate would either be determined through regular surveys conducted by the Kenya National Bureau of Statistics (KNBS) or involve public participation.
Further, the National Assembly recommended a revision of Kenya’s excise duty on alcoholic beverages, taking into account the alcohol content in the products.
“The government will increase excuse duty on spirits and other higher alcohol content products to discourage their consumption, as they pose health risks,” the committee published in a report.
About the Author
