Kenya: Government Increases Tax Receipt from Beer Giant

The Kenyan government has reduced the tax exemption for the low-end beer brand Senator, owned by East African Breweries Plc (EABL). As the government has reduced the tax exemption for alcohol giant EABL – owned by Diageo – it has been able to collect Sh23.8 billion more over three years.
The story exposes to what degree alcohol giants, such as Diageo, are dependent on cheap alcohol products to incite consumption, capture market share, and drive profits. The story also illustrates the potential of alcohol taxation to protect vulnerable communities and improve government revenue.