KENYA – Kenya has agreed to lower the tariff on UK-made alcohol from 35 percent to 25 percent, following a formal complaint from the United Kingdom earlier this year.  

The dispute arose after Kenya imposed a higher tariff on alcohol from the UK, despite an agreement under the Economic Partnership Agreement (EPA) that stipulated a 25 percent duty rate. 

The 35 percent tariff, which Kenya applied in line with the East African Community Common External Tariff (CET), caused discontent in the UK.  

The UK High Commissioner to Kenya, Neil Wigan, confirmed that the issue has now been resolved, and Kenya has started charging the agreed 25 percent tariff as per the EPA. 

“We have worked very closely with the Ministry [of Trade] and resolved that the tariff is now at 25 percent as provided for in our agreement with Kenya,” said Wigan during a press briefing on Kenya-UK trade relations. 

Kenya’s Trade Cabinet Secretary, Salim Mvurya, echoed the sentiment, stating that the resolution of this and other trade issues will bolster trade and investments between the two nations.  

“We will continue to work closely with the UK to ensure we grow our trade. The UK is making major investments in the country, including the Nairobi Railways City,” Mvurya added. 

The reduction in tariffs comes as a relief to local alcohol importers who had expressed concerns that the higher 35 percent CET rate was making UK-imported alcohol more expensive, negatively impacting sales.  

The lower tariff is expected to make UK-made spirits such as Scottish whisky, tequila, champagne, and bourbon more competitively priced in the Kenyan market. 

Kenya and the UK signed the EPA in December 2020, and it was ratified in March 2021. The agreement ensures that companies operating in Kenya, including British businesses, continue to benefit from duty-free access to the UK market following the UK’s exit from the European Union. 

According to the United Nations COMTRADE database, Kenya imported beverages, spirits, and vinegar worth US$23.23 million from the United Kingdom in 2023. 

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