Alcohol manufacturers welcome rules on ethanol trading

August 19, 2015
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KRA is set to enforce the new procedures governing access to ethanol from early next month to prevent abuse of the potable alcohol product/FILE
KRA is set to enforce the new procedures governing access to ethanol from early next month to prevent abuse of the potable alcohol product/FILE
NAIROBI, Kenya, Aug 19 – Alcohol manufacturers have welcomed the move by Kenya Revenue Authority to tighten rules on ethanol trading in a bid to ensuring accountability of this key ingredient.

Africa Spirits Limited Corporate Affairs Manager Anthony Kagiri says the guidelines are good for the industry and the consumer, pointing out that if strictly enforced, the rules will ensure that only genuine manufacturers handle ethanol therefore locking out counterfeiters and unscrupulous traders.

Kagiri says the new rules also protect the industry from generalized backlash that has been meted on genuine players for the actions of unscrupulous manufacturers, whose actions have sometimes been fatal.

“We have always called for stricter regulation on the supply of ethanol in this country and we are glad the government is now taking action. We support KRA in ensuring accountability of this key ingredient in the manufacture of alcohol,” Kagiri said.

On his part, Kenya Breweries Limited (KBL) Corporate Affairs Director Eric Kiniti said this will create a level playing field and help KRA maximize revenue in the sector.

Kiniti urged KRA to enforce the rules to the letter so as to get the desired results.

“We do not have an issue with the new rules, as the move will avoid ethanol getting into wrong hands, we are hoping KRA will take the rules seriously and make sure they are implemented as soon as possible,” Kiniti told Capital FM Business.

KRA is set to enforce the new procedures governing access to ethanol from early next month to prevent abuse of the potable alcohol product.

READ: KRA announces new ethanol purchase and importation rules

As part of the measures, persons intending to acquire ethanol shall provide quarterly usage projections to Kenya Revenue Authority, with the first such projection covering the period October to December 2015, due by September 1, 2015.

Further, traders seeking to purchase ethanol from local producers shall always be subject to KRA’s verification.

Transportation of the commodity will also be strictly controlled through electronic cargo tracking fitted vehicles.

Importers of ethanol have been asked to ensure the prompt declaration of the consignments a week before the consignments arrival.

All sea-based imports shall be consigned to and exclusively cleared at the Container Terminal, Kilindini Port, and Mombasa.

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