KBL to launch Sh25 beer brand to counter illicit brews

A blinded victim of toxic brew is strapped to his bed at the Makueni Hospital to prevent him from escaping.  Kenya Breweries Limited plans to introduce a low-priced brand in the market, to counter such brews. [PHOTO: ONESMUS NZIOKA/STANDARD]

By FAITH RONOH and JACKSON OKOTH

Kenya: Battle for a share of the low-end alcohol market is set to go a notch higher. This follows plan by Kenya Breweries Limited (KBL) to introduce a low-priced brand in the market, to counter illicit brews.

While there is a ban on spirits sold in sachets, most of these brands have surfaced in rural areas where business is booming.

“We will develop an alternative brew that will sell at Sh25 and will target economically challenged members of the society who will enjoy the drink while guaranteeing their safety,” said KBL Managing Director Joe Muganda. He made these remarks yesterday while addressing the media in Nairobi. This is against the background of the rising death toll from illicit liquor, which reached 80 people by yesterday.

A previous attempt by KBL to enter the low-end market has been thwarted by a punitive tax regime, pushing out its popular Senator Keg beer brand out of the pubs.

KBL is lobbying for a friendly tax bracket to allow it sell the low cost beer, a move that will kill the illegal chang’aa business.

Sanctioned outlets

The firm said the brand will only be made available to outlets sanctioned and approved by the national administration, is expected to release the product in the next two weeks.

“The net revenue generated from this proposed exercise would only just cover costs, and KBL would also be prepared to reinvest up to 5per cent of revenue collected in responsible drinking education programmes,” said Muganda.

But whether KBL can crack the illegal alcohol market remains to be seen given the large number of contraband sachets doing the rounds and the unmatched alcohol content in some of the lethal brands.

“These senseless deaths are a stark reminder of the need for all Kenyans to work tirelessly together to rid Kenya from the incessant challenge of dangerous, uncontrolled and unregulated brews,” said Muganda.