The Unintended Effect of Kenya’s Alcohol Regulation Policies

IEA-Kenya

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Post Date: 18 November 2019


The alcohol industry is one of the top contributors of ordinary revenue to Government. The revenue generated from taxation of alcohol represents a gain to Kenya because it provides resources that may be directed for other useful purposes like public service delivery. It is also best practice that taxes collected be used in mitigation of externalities caused by excessive consumption of alcohol. Some of the mitigation efforts include public education. Alcohol contributes a significant portion of excise taxes among categories of total excisable goods. Throughout the period from 2012 to 2017, excise taxes on alcoholic beverages remained as the single largest contributor to excise taxes and accounted for between 64 and 41% of excise revenues recorded.

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