The government has slashed the supply of duty-free alcoholic beverages to the Kenya Defence Forces (KDF) by 40 percent.
According to Treasury, supply of drinks through Defense Forces Canteen Organizations (Defco) to the military dropped by 46.96 percent in 2022.
Notably, Defco is the official trading organization for the Army, Air Force and Navy. It was founded on the recommendation of a government committee.
Further, according to the 2023 Tax Expenditure Report, supply of alcoholic beverages by major suppliers to Defco was reduced by 40.1 percent.
“In relation to Alcoholic and non-alcoholic beverages supplied to DEFCO, there was a sharp decline in Tax Expenditure from Ksh 1.39 billion in 2021 to Ksh 737.93 million in 2022. This could be as a result of decline in supply for Alcoholic beverages from the major companies (Kenya Breweries Limited and Keroche Breweries Limited) which reduced from 8.72 million litres in 2021 to 5.22 million litres in 2022,” the tax expenditure report notes.
Notably, this has led to increased importation of alcohol by the military due to the reduced local supply to the KDF Canteens
“In addition, the importation of alcoholic beverages increased by 8 percent which could have reduced the local supply. However, the supply of non-alcoholic beverages increased from Ksh 4.23 million in 2021 to Ksh 5.34 million in 2022,” the tax expenditure report reveals.
Alcohol Abuse Within the KDF
These reductions are in an effort by the government to tame alcohol and substance abuse by KDF officers.
However, alcohol sold to the military through Defco still enjoys a relief from excise duty, though not as much as before.
According to a study done by the Ministry of Health, military personnel both on active duty and retired often use alcohol to cope with stress, boredom, loneliness, and the lack of other recreational activities.
Additionally, the report emphasizes the risk of alcohol and substance addiction within the military.
“Furthermore, male and female military personnel have much higher rates of binge drinking than the normal population,” the report notes.
Previously, cases of KDF soldiers falling into the clutches of substance addiction have been on the rise.
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In 2020, the National Authority for the Campaign against Drug and Substance Abuse (NACADA) helped to rehabilitate Stanely Gachie Mwangi, a former KDF soldier who faced the axe from the military due to excessive drinking.
However, his was not a lone case.
During the Covid-19 period, four KDF soldiers were put into forced quarantine after they were caught drinking in a dingy establishment, way past the set curfew. This was one of many cases where military personnel were caught drinking heavily while failing to observe Covid-19 protocols during the pandemic.
Effect Tax Relief on Alcoholic Drinks to the Military
Notably, tax exemptions on alcoholic and non-alcoholic beverages were introduced by the former government headed by former President Uhuru Kenyatta in 2018.
This was through the Finance Act of 2018 that specifically exempted alcoholic and nonalcoholic beverages supplied to the Kenya Defense Forces from VAT.
In 2019, the excuse duty relief rested at Ksh598.59 million while in 2020, the relief was the highest, valued at Kshs 2.9 billion.
Other than the risk of military alcoholic addiction, there are the complaints of leakages of the cheaper Defco goods to the public.
This is because this privilege has previously been misused by some military officers who allow the public to buy the cheaper beverages from these canteens.
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DEFCO’s Managing Director Brigadier Albert Nderih however addressed this issue, acknowledging that it was a thorn in the flesh.
“The subsidized DEFCO products that we get to enjoy is a privilege extended to us by the government, when abused it can be withdrawn. Therefore, it lies with us to take up the responsibility and commit ourselves to protect this privilege,” Brig Nderih noted on the matter.
