Analysis of the Alcoholic Beverages Sector in Kenya

This Policy Paper was written by the Kenya Institute for Public Policy Research and Analysis (KIPPRA). The policy paper describes the alcoholic beverages in Kenya in terms of production, consumption, employment and tax revenue generated. KIPPRA’s researchers find that the production of alcoholic beverages has fluctuated over time, with beer taking the largest market share while spirits and wines take up a smaller market share. This is correlated to consumption patterns, with beer and spirits being the dominant categories. In regards of employment, the alcoholic industry does not play a major role in employment generation within the manufacturing sector or the economy at large. The share of formal employment in the alcoholic sub-sector averaged 1.7% of the manufacturing sector employment, and only about 0.20% of total employment. The total excise revenues have shown a marginal decline up to 2022/23. Finally, KIPPRA’s researchers conclude that to ensure effective regulation of the sector, it is imperative that Kenya Revenue Authority revises its taxation framework.

This Policy Paper can also be found here.