Manufacturers have warned the proposed increase in the cost of excise stamps as much as three times will spike trade in counterfeited spirits, cosmetics, water brands and juices, hurting growth in taxes targeted by President William Ruto’s regime.
The Kenya Association of Manufacturers, the sector’s lobby, charged that the resultant increase in the cost of compliance —which will make Kenya’s excise stamps amongst the highest in the world— will be passed onto consumers of bottled water, juices, cosmetics, beer as well as spirits like whisky and gin.
In a presentation to the Kenya Revenue Authority on Wednesday, the firms protested the proposed amendment to the laws as aimed at changing the use of excise stamps from a “revenue assurance tool” to a “revenue collection mechanism”.
“We are afraid that such increment to some of the most counterfeited items in Kenya will further encourage counterfeit and illicit trade,” KAM chairman Rajan Shah said in a statement after meeting with KRA.
KRA first rolled out excise stamps on alcoholic drinks and cigarettes in 2013 before being affixed on bottled water, juices, soda in polyethene terephthalate (PET) bottles, energy drinks, cosmetics and food supplements in 2019.
