By Andrew Mbuva
Illicit alcohol now accounts for 60% of all alcohol sold in Kenya, with illegal sales surging by 27% since 2022, according to a Euromonitor International study commissioned by the Alcoholic Beverages Association of Kenya (ABAK).
The report shows the government is losing an estimated KSh120 billion annually in tax revenue, largely due to homemade brews and illegally produced spirits.
While 67% of illicit alcohol by volume comes from artisanal brews like chang’aa and muratina, the biggest fiscal losses stem from smuggling, counterfeit brands, and tax evasion—smuggling alone has caused a 144% rise in tax losses since 2022.
ABAK Chairman Eric Githua called for urgent collaboration to fight the vice, saying, “Our aim was to help the government understand the size of the problem and identify solutions.” He warned that high alcohol taxes are driving consumers to cheaper, illegal options.
Industry Principal Secretary Dr. Juma Mukhwana termed the findings a wake-up call: “The illicit market has grown bigger than the legal one—it is organised and mainstream. We must protect the legal market while preserving cultural traditions.”
Assistant Inspector General Cunningham Suiyanka described the situation as dire: “This report is a warning. My biggest enemy is a counterfeit drink—it’s deadlier than chang’aa.” He urged immediate action.
Beverly Opora from the Ministry of Interior linked illicit alcohol to crime: “It’s a major internal security risk. Many crimes are committed under its influence.”
The study found that although many consumers are aware of the dangers of illegal alcohol, they still opt for it due to affordability, accessibility through informal channels, and a desire for cheaper premium brands. Cultural acceptance and weak enforcement also fuel the trade.
To curb the menace, the study recommends tighter ethanol controls, harmonised regional excise duties, mass awareness campaigns, and stricter enforcement and penalties.
