In Summary

  • Some suppliers are pushing the EABL to increase their commissions from the current four per cent to between eight and 12 per cent of the recommended retail price.

  • This sets the stage for another rise in beer prices following an average increase of Sh20 in December with the introduction of new taxes.

  • Distributors currently earn a commission of Sh5.60 to supply a bottle of Tusker and Sh6.40 on Guinness.

  • The distributors hinge their push for higher commissions on what their counterparts in Uganda earn.

East African Breweries Ltd (EABL) is locked in a row with some of its distributors over commissions, in a dispute that could see beer prices rise by nearly Sh20 a bottle.

The suppliers, under the Beverage Distributors of Kenya (BDK), are pushing the beer maker to increase their commissions from the current four per cent to between eight and 12 per cent of the recommended retail price.

This sets the stage for another rise in beer prices following an average increase of Sh20 in December with the introduction of new taxes on a number of goods including water, cigarettes and cars.

The distributors currently earn a commission of Sh5.60 to supply a bottle of Tusker and Sh6.40 on Guinness.

This will increase to between Sh11.2 and Sh16.8 on Tusker and Sh12.80 and Sh19.20 on Guinness should EABL agree to the distributors’ demands.

“KBL (Kenya Breweries Ltd) is concerned by the attempts of select distributors and retailers who seek to control and raise consumer prices beyond the recommended retail price,” said EABL in a statement Sunday following a meeting held by BDK on Saturday.

“Artificial price inflation is not good for the Kenyan consumer and economy.’’

BDK says it draws membership from the central, mountain, western, Rift Valley and coast regions.

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