The competition watchdog has come out against Kenya Revenue Authority (KRA) plans to fix the minimum price of alcohol, saying the taxman’s order is illegal.
KRA has ordered distillers not to sell alcoholic spirits in 250 millilitre containers at below Sh150, forcing manufacturers of drinks targeted at the low-end market to increase their prices. The taxman reckons that retailers selling the 250 millilitre spirit at below Sh150 are tax cheats and that production expenses and duty cost do permit alcohol to be sold at below the KRA price.
