Treasury Cabinet Secretary Ukur Yatani has lowered the excise duty target, the bulk of which comes from the sale of alcohol and cigarettes to Sh195.6 billion from the Sh241.4 billion set in June despite a scheduled raise on the tax from October 1.

According to the Treasury, the cut is linked to the effects of Covid-19 restrictions, including the closure of bars and curbs on mass gatherings.

. More than 30 products attract excise duty, including bottled water, fuel, and juices. But alcohol and cigarettes, largely sold in bars and restaurants, account for more than 75 percent of the tax collection.

When Kenya recorded its first coronavirus case, bars and restaurants were closed with immediate effect with public gatherings prohibited. However, a few months later, restaurants were reopened with bars being allowed to sell liquor alongside food.

The decision was made in an attempt to save the economy that was fast deteriorating. The government came to later regret the decision as coronavirus cases skyrocketed immediately after the restrictions were eased.

This forced the government to bring back the restrictions closing bars again only allowing liquor to be sold on a take-away basis. The government further banned public consumption of liquor only allowing Kenyans to drink from their houses.

After the restrictions were restored, coronavirus cases plummeted. However, there is less hope of opening up bars again since they seem to raise the rate at which the virus spreads.