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The excise duty on spirits is under review, with Kenya Wine Agencies Limited (KWAL) presenting proposals on the current regime to Treasury Cabinet Secretary John Mbadi on 11 November 2026. The National Treasury said KWAL management, led by managing director Lina Githuka, set out “the company’s perspectives and proposals on the existing excise duty regime for spirits for consideration in the ongoing tax policy review.”
The Treasury did not publish KWAL’s proposals or say whether any change to the excise duty on spirits is planned. It also did not say which other industry players have made submissions, or whether the review covers beer and wine as well as spirits.
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What the Treasury said about excise duty on spirits
According to the National Treasury, the discussions “examined the policy objectives underpinning the current excise duty framework.” It listed four of them:
- promoting locally produced agricultural raw materials such as sorghum, cassava and millet;
- supporting local farmers;
- strengthening domestic agricultural value chains; and
- curbing the proliferation of illicit brews.
The Treasury said the meeting was part of its broader consultations with industry stakeholders “to inform tax policy considerations that balance revenue mobilisation with domestic production, agricultural value addition, business competitiveness and the country’s wider economic interests.”
Who is affected by a change to spirits excise
The excise duty on spirits is charged at the point of manufacture or import, so any change flows through to shelf prices for gin, vodka, whisky, brandy and other spirits. Manufacturers that use local grains and roots, distributors, retailers and bars would all feel a change in the rates or in how the duty is applied.
The objectives the Treasury listed point to two pressures it is trying to balance. Lower duty for drinks made from local crops can support farmers who grow sorghum, cassava and millet, while high prices on legal drinks can push some drinkers towards illicit brews, which pay no tax at all. Setting the excise duty on spirits therefore affects both tax revenue and the size of the legal market.
What happens next in the tax policy review
No date has been given for the outcome of the review of excise duty on spirits. Excise rates are set by law, so any change would need to go through Parliament, usually in a Finance Bill or a tax amendment Bill. Our guide to the Finance Bill 2027 explains how that process works.
Recent changes to excise and VAT are covered in our reports on the tax law Ruto signed on tiles, sinks and fuel VAT and the latest tax Bill on fuel VAT and tile excise. Investors in listed brewers and distillers can see our EABL dividend history, and our report on the Bill to raise the drinking age to 21 covers other proposed alcohol rules.
Frequently asked questions
Is the excise duty on spirits changing?
Not yet. The National Treasury says the spirits excise regime is part of an ongoing tax policy review, but it has not announced any new rates.
What did KWAL ask the Treasury for?
KWAL presented its perspectives and proposals on the existing excise regime for spirits. The Treasury did not publish the details.
Why does the Treasury link spirits excise to farmers?
It says the current framework aims to promote local raw materials such as sorghum, cassava and millet, support farmers and strengthen agricultural value chains.
Who leads Kenya Wine Agencies Limited?
The Treasury named Lina Githuka as KWAL’s managing director.
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