East African breweries has unveiled plans to jumpstart growth in sales of bottled beer in Kenya. This as its biggest market’s economy recovers and the Government looks set to hold off on tax increases, its chief executive said on Friday. The brewer which falls under parent company Diageo and is known for its tusker beer, said sales of bottled beer were low in the first half of the year to December after the government raised excise duty by 5.2 per cent.
Kenya, which pays 70 per cent of annual revenue has taxed beer and cigarettes heavily to boost revenues. It raised excise on beer by 43 per cent at the end of 2015, hitting demand for EABL’s beer. CEO Andrew Cowan said he “…wouldn’t expect to see the government doing unpredictable things. I don’t see the government going back to that space.” Kenya has one of the highest rates of tax on beer on the continent.