Coca-Cola and Kenya’s agricultural and manufacturing stakeholders under KAM have raised the alarm over a proposed change in the Finance Bill 2026, specifically Clause 36(a), which targets excise duty on fruit and vegetable juices. According to the alert, the clause would raise excise duty from KSh 14.14 per litre to KSh 20 per litre—an increase that could significantly affect the cost of popular beverages sold in Kenya.
The concern centers on how excise duty hikes typically ripple through pricing. If the additional tax burden is passed along the supply chain—from producers to distributors and retailers—consumers may see higher retail prices for juices and soft drinks. The news story highlights that the tax adjustment could translate into price increases in the range of 7–10% for 1-litre juices and sodas. This is presented as a direct outcome of the duty increase rather than a theoretical possibility, implying that the impact could be felt quickly if the proposal becomes law.
Fruit and vegetable juices occupy an important market segment, both for consumers who seek alternatives to sugary beverages and for producers who rely on stable demand. In Kenya’s context, where many households closely monitor day-to-day spending, a noticeable price jump could reduce purchase frequency or shift demand toward cheaper products. Even moderate increases can matter for everyday consumption, especially when consumers are already navigating broader economic pressures such as inflation and the cost of essentials.
The story also frames the excise duty adjustment as a policy issue that lawmakers should carefully consider. When taxes on specific food and beverage categories rise, the effects can extend beyond pricing alone. Businesses may face higher operating costs, including compliance costs related to tax rate changes and potential adjustments in production and distribution strategies. If demand declines in response to higher prices, companies could respond by altering marketing, packaging sizes, or procurement plans.
By voicing concerns, Coca-Cola and KAM appear to be pushing back against the intended economic impact of Clause 36(a). The warning suggests that the measure, rather than achieving its fiscal or regulatory objective cleanly, may impose a burden that ultimately lands on consumers. The news story’s emphasis on the projected 7–10% increase for 1-litre beverages indicates that stakeholders view this as more than a minor adjustment.
The specific figures in the proposal are crucial to the argument. Increasing the excise duty per litre by KSh 5.86—from KSh 14.14 to KSh 20—represents a substantial percentage jump. That magnitude strengthens the case made by the companies and KAM that the policy could cause meaningful changes in shelf prices. In markets with tight margins, such changes can be difficult to absorb without adjusting the final price.
Moreover, raising taxes on juices and related beverages may influence how consumers perceive and choose products. If juices become more expensive, some consumers may switch back to other drinks, reduce overall consumption, or look for lower-cost alternatives. This could affect both domestic juice production and sales of beverage brands depending on how prices move and how quickly the market adjusts.
The story, shared under the Sholla Ard 🇰🇪 banner, positions this Finance Bill 2026 clause as a potential flashpoint between government revenue measures and the beverage industry’s pricing realities. With Coca-Cola and KAM sounding the alarm, the proposal may now attract broader debate among policymakers, industry players, and the public.
Ultimately, the news story communicates a clear message: Clause 36(a) of the Finance Bill 2026 proposes increasing excise duty on fruit and vegetable juices from KSh 14.14 per litre to KSh 20 per litre, and this change may cause prices for 1-litre juices and sodas to rise by an estimated 7–10%. Whether the government proceeds with the clause as drafted will likely depend on stakeholder feedback and the outcome of policy discussions surrounding the bill.
Source: Sholla Ard 🇰🇪
Sholla Ard 🇰🇪: Breaking: Coca-Cola and KAM have sounded the alarm over Clause 36(a) of the Finance Bill 2026. The clause proposes increasing excise duty on fruit and vegetable juices from KSh 14.14 per litre to KSh 20 per litre. The result? • 1L juices and sodas could rise by 7–10%. #breaking
— @sholard_mancity May 1, 2026
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