Illicit alcohol makes up 60pc of Kenya's consumption, says industry lobby

Illegal Chang'aa brewing on the river banks of Mathare Valley, Nairobi County. [File, Standard]

About 60 per cent of alcohol consumed in Kenya is illicit, the Alcoholic Beverages Association of Kenya (ABAK) has said, warning that illegal trade remains a major challenge despite ongoing government crackdowns.

ABAK said multi-agency operations involving the National Authority for the Campaign Against Alcohol and Drug Abuse (NACADA), Kenya Revenue Authority (KRA), Anti-Counterfeit Authority (ACA), law enforcement agencies and county governments had disrupted illegal manufacturing networks and seized counterfeit products.

The association noted that authorities in Nairobi seized illicit alcohol, counterfeit bottles, fake excise stamps and raw spirit valued at nearly Sh790 million during the 2025/26 financial year.

"Demonstrating illegal products continue to dominate the market despite the existing legal and regulatory framework," ABAK said in a statement yesterday.

The lobby welcomed recent government measures under the Finance Act, 2026, including the reduction of excise duty on Extra Neutral Alcohol (ENA) to Sh80 per litre and the implementation of the Excise Duty (Remission of Excise Duty) Regulations, 2026.

ABAK said the reforms could help reduce market distortions that give illegal manufacturers an advantage and encourage cross-border smuggling.

"Effective enforcement must be complemented by fiscal policies that remove incentives for illegal trade, stronger border controls, enhanced ethanol traceability, consumer awareness initiatives and consistent implementation of existing laws governing the manufacture, distribution and sale of alcohol," the association noted.

The association said illicit operators had adopted new methods including counterfeit packaging, fake excise stamps, recycled bottles, online distribution channels and hidden production sites.

ABAK called for closer cooperation between government agencies, regulators and legitimate alcohol manufacturers to strengthen efforts against illegal trade.

The association said it would continue supporting measures to prevent underage drinking and promote responsible alcohol consumption while protecting consumers and legitimate businesses.