Manufacturers and distributors of alcoholic beverages have asked retailers to stick to the recommended retail prices.

This follows the move by the Kenya Revenue Authority (KRA) to effect a 5.17 per cent annual inflation tax adjustment on excise duty charged on the products.

Implementation of the inflation tax adjustment, which was first instituted last year, saw some manufacturers increase product prices to accommodate the new realities.

Manufacturers and distributors under the aegis of the Alcohol Beverages Association of Kenya (ABAK) said unfortunately, some traders have taken advantage of this to overprice customers out of their favourite drinks.

"Despite well-spelt out prices that are often published in the media for all to see and adhere to, it is not uncommon to buy a bottle of beer say at Sh140 in one part of town and find the same retailing at Sh500 in another location," said ABAK Chairman Gordon Mutugi in a statement.

"This exaggerated pricing does not only make it difficult for revellers to enjoy their favourite tipple, but some also find it difficult to visit outlets in their own neighbourhoods and have had to commute to look for fairer prices elsewhere.”

Mr Mutugi said there were instances where retailers were raising prices per pack to gain more profit even though manufacturers had not increased prices. He said this could push consumers to turn to illicit drinks.

"By premium pricing alcoholic beverages, many retailers are forcing consumers to go to the multiple retailers who are still charging the RRP. Offering a compelling price on alcoholic beverages will keep customers coming through the door as it is the primary driver of footfall into stores," said Mr Mutugi.

A study commissioned by ABAK last year showed that increasing the price of legitimate alcohol had pushed drinkers to illicit drinks.

He said consumers respond to the changes in prices by changing the taste of the commodity.

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