In an annual report, East African Breweries (EABL) revealed that its employees are given Sh36,000 worth of alcoholic products for free each year as part of their staff benefits.
“All employees are eligible to receive a discretionary choice from a select product range to enable them to experience the company brands first hand,” EABL indicated in the report.
3,000
“The value of the products is Sh3,000 per month. There is no cash alternative to product allowance and it is not a contractual benefit.”
The brewer manufactures and distributes a wide range of alcohol products including brands such as Tusker, Johnnie Walker, Smirnoff and Serengeti.
At Sh3,000 a month, the product allowance amounts to Sh36,000 annually for each of the company’s 1,600 workers. The brewer has set the amount at the maximum level at which the benefit will not attract income taxes.
Taxable
Non-cash benefits offered to staff are not taxable unless they exceed Sh3,000 a month, according to Kenya Revenue Authority guidelines.
EABL and other companies have offered their stock-in-trade to employees for free or at a discount as part of their staff retention strategies. Banks, for instance, give loans to their employees at below-market rates.
&format=webp)
&format=webp)
&format=webp)
&format=webp)
&format=webp)
&format=webp)