Kenya lowers tariff on UK alcohol following commerce dispute decision  | Meals Enterprise Africa

KENYA – Kenya has agreed to decrease the tariff on UK-made alcohol from 35 % to 25 %, following a proper criticism from the UK earlier this 12 months.  

The dispute arose after Kenya imposed the next tariff on alcohol from the UK, regardless of an settlement below the Financial Partnership Settlement (EPA) that stipulated a 25 % responsibility fee. 

The 35 % tariff, which Kenya utilized consistent with the East African Neighborhood Frequent Exterior Tariff (CET), induced discontent within the UK.  

The UK Excessive Commissioner to Kenya, Neil Wigan, confirmed that the difficulty has now been resolved, and Kenya has began charging the agreed 25 % tariff as per the EPA. 

“We’ve got labored very carefully with the Ministry [of Trade] and resolved that the tariff is now at 25 % as offered for in our settlement with Kenya,” mentioned Wigan throughout a press briefing on Kenya-UK commerce relations. 

Kenya’s Commerce Cupboard Secretary, Salim Mvurya, echoed the sentiment, stating that the decision of this and different commerce points will bolster commerce and investments between the 2 nations.  

“We are going to proceed to work carefully with the UK to make sure we develop our commerce. The UK is making main investments within the nation, together with the Nairobi Railways Metropolis,” Mvurya added. 

The discount in tariffs comes as a aid to native alcohol importers who had expressed considerations that the upper 35 % CET fee was making UK-imported alcohol costlier, negatively impacting gross sales.  

The decrease tariff is anticipated to make UK-made spirits corresponding to Scottish whisky, tequila, champagne, and bourbon extra competitively priced within the Kenyan market. 

Kenya and the UK signed the EPA in December 2020, and it was ratified in March 2021. The settlement ensures that firms working in Kenya, together with British companies, proceed to learn from duty-free entry to the UK market following the UK’s exit from the European Union. 

In response to the United Nations COMTRADE database, Kenya imported drinks, spirits, and vinegar price US$23.23 million from the UK in 2023.