EABL mulls over ditching pocket friendly Senator Keg as tax hits profit

Kenya: East African Breweries might stop producing Senator Keg if the Government does not withdraw excise tax on the low-cost drink. The giant beer and spirits maker has reported nearly flat growth in sales due to a drastic fall in consumption of Senator Keg, following imposition of excise tax last year.

EABL said net sales only grew 4 per cent to reach Sh61.3 billion in the full year up to June 30, 2014, up from Sh59 billion the previous year. At the same time, Senator Keg sales dropped by 75 per cent. As a result, the brewer reported a modest 5 per cent growth in profit after tax which stood at Sh6.8 billion, up from Sh6.5 billion in 2013. Profit before tax however dipped 6 per cent to Sh10.4 billion, down from Sh11.1 billion the previous year.