{"id":13609,"date":"2020-08-30T19:12:45","date_gmt":"2020-08-30T19:12:45","guid":{"rendered":"https:\/\/www.africa-press.com\/kenya\/?p=13609"},"modified":"2020-08-30T19:12:45","modified_gmt":"2020-08-30T19:12:45","slug":"hangover-hits-alcohol-market-wiping-out-thousands-of-jobs","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/economy\/hangover-hits-alcohol-market-wiping-out-thousands-of-jobs","title":{"rendered":"Hangover hits alcohol market wiping out thousands of jobs"},"content":{"rendered":"

Author:\u00a0Macharia Kamau<\/strong>
\nAfricaPress-Kenya:<\/strong> The coronavirus pandemic has wreaked havoc on alcoholic beverages industry with the result being tens of thousands of jobs lost. The industry and the government have also lost billions in earnings and taxes, respectively.<\/p>\n

On the one hand, the pandemic has cut disposable incomes that consumers have to spend on drinks, while on the other, measures put in place to contain the spread of the virus have too had a devastating impact on the industry.<\/p>\n

A new study notes that the combination of these factors have pushed up the illicit trade in alcohol to an all-time high, with\u00a0the black market\u00a0now accounting for nearly half of all alcohol sold in Kenya.<\/p>\n

The industry\u2019s supply chain that starts at the firm and runs through to the retail points is expected to shed upwards of 57,000 jobs in three months to September.<\/p>\n

Industry players including barley and sorghum farmers to transporters and beer manufacturers are projected to lose Sh9 billion while the taxman will lose Sh5.88 billion in excise and value added tax.<\/p>\n

The study commissioned by the Alcoholic Beverages Association of Kenya (Abak) noted that the measures such as\u00a0ban on consumption of alcohol in eateries\u00a0would have a devastating impact on the industry that is one of the largest employers as well as huge taxpayer.<\/p>\n

\u201cThe impact of Covid-19, closure of bars, ban on consumption of alcohol in restaurants and eateries will lead to supply chain losses of Sh9.1 billion and 57,000 jobs losses between July-September 2020,\u201d said the study.<\/p>\n

It also noted that due to reduced demand for barley and sorghum, 10 per cent of farmers would drop out of the supply chain.\u00a0The measures limiting sale of alcohol to curb spread of the coronavirus, the report noted, had also distorted the market and resulted in a surge of illicit brews whose sale had risen to an all-time high and now account for 44 per cent of the alcohol being sold in Kenya.<\/p>\n