Nairobi, June 14 -- The Treasury plans major tax breaks for manufacturers using a top grade of ethanol, predominantly used in the production of premium alcoholic beverages, cosmetics, and pharmaceuticals, raising hopes of lower processing costs and boosting the competitiveness of the locally made products.

National Treasury Cabinet Secretary John Mbadi has proposed to reduce the excise duty charged on the premium ethanol known as undenatured extra neutral alcohol (ENA) from Sh500 per litre to Sh80 per litre.

"Mr Speaker, in the Finance Act 2025, the excise duty rate for undenatured Extra Neutral Alcohol supplied to licensed manufacturers of spirituous beverages was set at Sh500 per litre. To support manufacturers in this sector, the Bil...