(Matambú Magazine-Agro) – In Kenya, sorghum and barley are grains used in the brewing industry for making beer. That said, the new measures taken by the government vis-à-vis brewers inevitably affect farmers’ incomes.
From October 1, 2022, brewing companies in Kenya will have to pay 142.4 shillings ($1.2) per liter of beer, instead of the current 134 shillings. Recently announced by the authorities, this increase of 6.3% applied very soon to the said drink, is subject of many concerns within the entire industry of the sector.
According to Kenya Breweries Limited (KBL), the country’s leading brewer, the application of this new measure will affect its local input supply scheme. Some estimates also indicate that around 15,000 smallholder farmers, partners of KBL, will also be affected.
Eric Kiniti, Relation Manager between EABL (East African Breweries Ltd.) and its Kenyan subsidiary KBL, estimates that sorghum and barley growers in his network will see their income cut by 588 million shillings (5 million $), with new policies coming very soon.
These companies which, to emerge, have been benefiting in the past from reduced excise duties on malted beers, have endured for the past few years tax regulations which are at their competitive disadvantage in the market, compared to other tax-exempt local beers.
It should importantly noted that the KBL remains the leader of the beer market in East Africa. Its main product is the “ Senator Keg Lager ” beer made from sorghum and launched in 2004.
