NAIROBI, Kenya, Aug 8 – A bottle of beer in Tanzania costs as little as Sh100, nearly half the price of a similar product in Kenya, where it retails for Sh200 or more.
The price gap has been linked to tax policies, with Kenya levying higher excise duties on alcoholic beverages than its regional peers. According to East African Breweries Ltd (EABL), taxes account for the bulk of beer production costs locally.
“Tax is the biggest cost to our business. In Kenya, excise taxes are more than double what we see in Uganda,” said EABL’s Group Corporate Relations Director Eric Kiniti during an interview on Capital FM.
“If you go to Namanga, a beer equivalent to Tusker sells for Ksh 100. On the Kenyan side, you won’t find anything below Ksh 200.”
A 2023 report by KPMG put excise tax on beer in Kenya at about Sh142.44 per litre, excluding import duties, county licensing fees, VAT, and other regulatory charges.
The price differences are most visible in border towns like Busia and Namanga, where cross-border beer runs are common among consumers seeking cheaper alternatives.
Despite the high tax environment, EABL recently posted a Sh12.19 billion net profit for the year ended June 2025, driven by increased sales, lower operational costs, and forex gains.
