Kenya now earns Sh70 from every beer sold

Kenya Breweries Ltd Managing Direcor Jane Karuku chats with EABL Group MD Charles Ireland when the firm released its half year results. [PHOTO: WILBERFORCE OKWIRI/STANDARD]

The recent hike in taxes has seen government take nearly half the prices of beer leaving manufacturers in a tight spot.

East African Breweries Limited, which Thursday announced a 67 per cent jump in half-year profits after tax to Sh7.7 billion, said the government is taking about Sh70 in taxes from a 500ml bottle selling at a recommended retail price of Sh150. The new taxes are expected to hit the company in the second half of the year as retailers pass on the costs to consumers.