Legal and Health advocates have urged President Uhuru Kenyatta to sign the Finance Bill 2019 into law.
The bill raises tax on cigarettes and alcohol by 15 per cent.
If signed into law, the bill will slightly raise the price of a litre bottle of wine and whiskey by between Sh18 and Sh24 and a packet of 20 cigarettes by Sh8.
The Advocates say that the money raised should then go towards funding Universal Health Coverage (UHC).
Last week, beer and cigarette manufacturers ganged up and urged President Uhuru not to assent to the bill, saying it will lead to job losses.
But yesterday, four health and legal lobbies said the taxes were negligible and should, in fact, be raised further.
The Treasury estimates the excise duty increase will net Sh4.6 billion in additional revenue.
The advocates said this money should finance the Universal Health Coverage, which will be rolled out nationally next year at an annual cost of Sh40 billion.
Currently the UHC is running on a pilot program in four counties.
They are Kisumu, Nyeri, Isiolo and Machakos.
UHC will afford all Kenyans near-free health services.
“The WHO Global Health Report reports that four out of 100 deaths in Kenya are attributable to alcohol which also causes a high overall burden of disease and injuries,” said Emma Wanyonyi, head of the International Institute for Legislative Affairs, a Nairobi-based legal think-tank.
“On the other hand, a report by the Ministry of Health indicates that 55 per cent of all deaths from cancers of the trachea, bronchitis, and lung are attributable to tobacco,” she said.
The Bill also proposes to increase excise duty for diesel-powered vehicles (excluding tractors) and petrol cars more than 3,000cc by 30 per cent.
Last week, the beer and cigarette makers demanded that sections of the bill that apply to them be deleted.
The petition was filed by BAT, Mastermind Tobacco, Kenya Wine Agencies, and Alcoholic Beverages Association of Kenya.
They argue that farmers, retailers, wholesalers, distributors and other service providers will be adversely affected by the increased tax.
“The charges have instead led to the increased illicit trade in the respective industries,” they told Uhuru.
But the Non-Communicable Diseases Alliance of Kenya yesterday accused the industry of fear-mongering saying Kenya has enough legal controls to stop illicit trade.
“Taxes are not the singular cause of illicit trade in tobacco and alcohol,” said NCD Alliance vice-chair David Makumi.
Kenya Tobacco Control Alliance (Ketca) programmes officer Achieng Otieno said the taxes on tobacco were still way below 75 per cent of the retail price recommended by the World Health Organization.
“Tax and price measures are considered to be one of the most effective NCD control strategies due to their potential to discourage initiation, encourage quitting of harmful products such as tobacco and alcohol,” he said.
The meeting was also attended by the Alcohol Control Policy Network.
“Excise taxes on tobacco and alcohol are therefore a key strategy for the provision of universal health coverage as envisioned under the government’s ‘big four’ agenda,” said Philip Gichana, head of the network.