Unlike a distillery, which produces alcohol from raw materials such as grains, fruits, sugarcane, or molasses, a compounder mixes or blends different ingredients typically with other substances like flavourings, colourings, or sweeteners to create a new alcoholic product, usually spirits or wines.
Kenya is set to offer relief on excise duty on spirits and wine manufactured from local agricultural produce, joining Uganda and Tanzania, which already deploy the strategy to boost home producers.
The Cabinet Secretary for National Treasury John Mbadi has published draft regulations on the remission of excise duty, which for the first time, will include spirits and wine made from locally grown agricultural products.
