The cost of carbonated soft drinks such as sodas, fruit juices, and fermented sugar, sweetened yoghurt, milk will rise if MPs approve new tax proposals.
A proposed change to the Finance Bill, 2025 seeks to introduce a Health Promotion Levy in the soft drinks industry.
Nandi Hills MP Bernard Kitur wants the National Assembly’s Finance and National Planning Committee to introduce a Health Promotion Levy in the soft drinks industry to combat the rising consumption of sugar-sweetened beverages in Kenya, which has led to increased cases of obesity, diabetes, and other non-communicable diseases (NCDs).
“To mitigate this public health crisis, we propose the introduction of the Health Promotion Levy in the Soft Drinks Industry (HPL). This levy aims to reduce sugar consumption, encourage healthier product reformulation, and generate revenue to support public health programmes,” he said.
Mr Kitur wants the money collected under the Health Promotion Levy to be used to fund the school feeding programme, support public health campaigns, school nutrition programmes, and healthcare infrastructure.
MP says any gramme above the set base of 4g/100ml should attract a levy.
Photo credit: Pool
Speaking at the ongoing public hearings on the Finance Bill 2025 at the Edge Convention Centre in Nairobi's South C estate, Mr Kitur, appearing before the committee chaired by Molo MP Kuria Kimani, said the objective of the levy is to reduce sugar consumption by discouraging the production and purchase of high-sugar soft drinks.
He said the imposition of the levy will encourage manufacturers to lower the sugar content in their products.
“It will also ensure consumer awareness and promote healthier beverage choices and public education on the health risks of excessive sugar consumption.”
The Nandi Hills MP told the committee that the levy will be applied to manufacturers and importers of sugar-sweetened beverages.
He said the set base is 4g/100ml, which is exempt from tax, and any gramme above the set base attracts levy with local manufactured beverages being taxed at a rate of Sh1 per g/100ml above the set base.
“For imported beverages it is at a rate of KshSh2 per g/100ml beyond the set base,” Mr Kitur said. “For example, if drink Y has 6g/100ml it will attract a levy of Sh2 if locally manufactured or Sh4 if imported as per the format above.”
He said the Health Promotion Levy will also be exempted on dairy-based beverages containing at least 75 per cent milk content as well as goods to be exempted.
The Nandi Hills lawmaker said the Kenya Revenue Authority (KRA) will administer the collection of the levy while the verification of the contents will be evaluated by Kenya Bureau of Standards (Kebs).
The first-term lawmaker said the expected impact of the Health Promotion Levy will be a reduction in sugar consumption and obesity-related diseases.
MP says the introduction of a soft drinks levy will significantly contribute to improving the health of Kenyans while promoting responsible industry practices.
Photo credit: Pool
Mr Kitur said the imposition of the levy will lead to increased innovation in the beverage industry towards healthier alternatives.
He said the proposed levy will result in strengthened public health initiatives through dedicated funding.
“The introduction of the Soft Drinks Industry Levy will significantly contribute to improving the health of Kenyans while promoting responsible industry practices,” Mr Kitur said. “We urge Parliament to pass this proposal in the interest of public health and economic sustainability.”
