EconPapers    
Economics at your fingertips  
 

Reforming Excise Taxation on Alcohol Products in Kenya

Alex Oguso, James Ochieng', Nathan Remcho, Magnus Eldrup and Hellen Chemnyongoi

Working Papers from African Economic Research Consortium

Abstract: This paper explores the excise taxation systems for alcohol products in Kenya, focusing on optimizing tax policy to enhance revenue generation and further mitigate negative externalities. Utilizing a proprietary elasticity estimation nuanced by a literature review to generate joint Laffer curves, we identify potential adjustments that could increase government revenue without causing significant market disruptions. Our findings suggest that there is a scope to raise taxes on alcohol products, which could not only boost fiscal income but also improve public health outcomes by discouraging excessive consumption. The paper proposes practical mechanisms that include a move to alcohol content-based excise system for taxation of alcoholic products in Kenya. The recommendations in the paper highlight the potential for excise taxes to contribute to economic growth and public welfare in Kenya while emphasizing the importance of stakeholder engagement and data-driven policy making.

Date: 2025
New Economics Papers: this item is included in nep-hea
Note: African Economic Research Consortium
References: Add references at CitEc
Citations:

Downloads: (external link)
https://publication.aercafricalibrary.org/handle/123456789/3967 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aer:wpaper:dcf8da2b-9b7c-4da1-8914-745bbabd58f2

Access Statistics for this paper

More papers in Working Papers from African Economic Research Consortium Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Njiru ().

 
Page updated 2025-03-25
Handle: RePEc:aer:wpaper:dcf8da2b-9b7c-4da1-8914-745bbabd58f2