Alcohol & 2 Items Kenyans Have Not Stopped Spending On Despite High Cost Of Living

A survey released by Nairobi-based research firm Trends and Insights For Africa (TIFA) has revealed that alcoholic drinks are the one item Kenyans have not reduced expenditure on and even stopped spending on recently because of the rising cost of living.

In the report from the survey, 2 per cent of Kenyans have reduced spending on alcoholic drinks, among the items whose sales are expected to peak with the onset of the festive season.

However, 4 percent of those Kenyans who have reduced their expenditure on alcohol happen to earn an income of more than Ksh20,000 every month. 1 percent earn an income of less than Ksh5,000.

Kenyans having a drink at the bar. /CNN

The decision not to reduce spending on alcohol comes amidst bar owners and attendants around the country complaining of excise taxes on alcohol, forcing consumers to change base and eye illicit alcohol and cheaper alternatives in a bid to avoid increased alcohol prices.

A large percentage of customers consuming illicit alcohol report having been previous consumers of genuine alcohol and cigarettes before the increase in taxes.

According to government policy reviews, spirits have faced double annual excise tax increases since 2015.

Notably, Interior CS Kithure Kindiki on Friday, November 1 assigned the National Authority for the Campaign Against Alcohol and Drug Abuse (NACADA) the legal mandate to enforce the Alcoholic Drinks Control Act (ADCA), 2010, as well as the NACADA Act, 2012 in its crackdown on alcohol abuse in Kenya.

In line with section 51 of the ADCA, 2010, NACADA’s Authorised officers may, at any reasonable time, enter any place in which they believe on reasonable grounds that any person or persons are in any way contravening the provisions of the law.

Other items that Kenyans have not reduced expenditure on include electricity and cooking fuel/gas at 3 percent each.

In comparison, however, Kenyans have reduced spending on food, transport and clothing; at 84 percent, 15 percent and 9 percent respectively.

"Among income-earners (at whatever level), the vast majority mention food as the main purchase item/category they have had to reduce expenditure on recently due to inflation.

"This holds true for those in all three income categories, although those somewhat more affluent (earning above Ksh20,000) have had to do this a bit less than those earning least (below Ksh5,000: 79% vs. 88%), while the second most common decrease among the former has been on transport (which also applies to those in the middle income-category: 19% for both)," TIFA Research's report read in part.

Overall, a large majority of Kenyans (87 percent) report having had to recently reduce expenditure on various items due to the constantly rising cost of living in recent years.