Following the Kenyan government’s decision to revise the rate of excise duty on such products, the prices of consumer goods such as beer, cigarettes, fruity drinks, fuel, and sugar confectioneries are set to go up.
The excise duty on illuminating kerosene has spiked up from 10,305 Kenyan Shillings, to 10,835.70 per 1000 litres, while the excise duty on diesel oil has moved from 3,700 Kenyan Shillings to 3,890.55 Kenyan Shillings per 1000 liters.
The excise tax on motorcycles popularly known as Boda Bodas, spiked up by 541 Kenyan Shillings, to hit 11,061 Kenyan Shillings per unit from 10,520 Kenyan Shillings.
Beers and other fermented beverages will now pay 110.62 Kenyan Shillings per liter as excise tax which is up from 105.20 Kenyan Shillings.
Following the increase in excise duty, Beer companies like East African Breweries Limited (EABL), have increased the prices of their products by between 20 Kenyan Shillings to 50 Kenyan Shillings.
As outlined by law in Section 10 of the Excise Duty Act 2015, the rate of excise duty charged on excisable goods is periodically adjusted for inflation.
The latest adjustment, factors in the average rate of inflation for 2018 to 2019 which is 5.15 percent.
This is the second time that the rate of excise duty, has been adjusted for inflation in the last seven months.
The Commissioner General of the Kenya Revenue Authority In December 2018, increased the excise duty on excisable goods by 5.2 percent as an adjustment for inflation.
The new rates were implemented on the 1st of July 2019.
