ABAK Opposes Alcohol Bill, Warns of 8,960 Jobs at Risk

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NAIROBI, Kenya- The Alcoholic Beverages Association of Kenya (ABAK) has called for the withdrawal of the Alcoholic Drinks and Drugs Control Laws (Amendment) Bill, 2026, warning that its proposed restrictions could threaten thousands of jobs, reduce government revenue and increase the market for illicit alcohol.

The association issued the warning on Friday, November 6, a day after the Bill underwent its First Reading in the National Assembly.

ABAK argues that the proposed amendments could place additional financial and regulatory pressure on licensed alcohol manufacturers, distributors and retailers while making it harder for legitimate businesses to compete with unregulated suppliers.

The association maintains that it supports efforts to reduce alcohol-related harm and eliminate illicit trade but wants Parliament to reconsider the Bill before advancing it through the legislative process.

Kui Kinyanjui, ABAK’s chair, said the proposed measures could weaken legitimate businesses at a time when the industry already faces competition from illicit alcohol producers.

“Coming at a time when our industry is under significant pressure from illicit alcohol providers, this Bill risks weakening legitimate businesses while creating more room for illicit alcohol to flourish.

This will affect thousands of jobs, affect planned investments, reduce government revenue and ultimately expose consumers to greater harm,” Kinyanjui said.

ABAK estimates that raising the minimum legal drinking age from 18 to 21 could put approximately Sh3.3 billion in annual retail and hospitality revenue at risk.

The association also projects that the proposed change could affect Sh1.8 billion in government tax revenue, 8,960 jobs and 1,792 licensed outlets.

The proposed age restriction would also limit access to alcohol for an estimated three million Kenyans aged between 18 and 21.

ABAK argues that restricting access for this group could push some consumers towards informal suppliers instead of eliminating demand.

The association also objects to a proposed solatium levy of Sh2 per litre on legitimate alcohol manufacturers.

According to ABAK, the levy could impose an additional annual financial burden of approximately Sh1.3 billion on the regulated industry.

It warns that the additional cost could increase the price difference between legally manufactured alcoholic beverages and cheaper illicit alternatives, potentially making unregulated products more attractive to price-sensitive consumers.

The Bill also proposes restrictions on alcohol sales through supermarkets, restaurants and online platforms.

ABAK argues that the measures could affect businesses that rely on alcohol sales, including hospitality establishments, supermarkets and e-commerce operators.

The association says blanket restrictions could limit access to regulated products and create opportunities for informal sellers to expand their operations.

The proposed changes could also affect Kenya’s tourism industry, where hotels, restaurants and other hospitality businesses serve alcoholic beverages as part of their services.

Another provision that has attracted opposition from ABAK concerns the proposed restriction on alcohol transportation.

The Bill proposes limiting the transportation of alcoholic beverages to between 6.00 a.m. and 6.00 p.m.

ABAK says the restriction could disrupt established distribution networks, increase logistics costs and create difficulties for manufacturers and distributors that operate across different regions.

The association argues that the proposed hours could also conflict with the government’s ambition to establish a 24-hour economy.

The proposed legislation also introduces additional licensing and product registration requirements for alcohol manufacturers and distributors.

ABAK argues that the new requirements could duplicate existing regulatory processes and increase compliance costs for businesses that already operate under established licensing frameworks.

The association has also raised concerns about the proposed creation of a committee to approve alcohol advertising and promotional activities.

It argues that introducing another approval structure could complicate the regulatory environment without demonstrating why existing institutions cannot adequately oversee the industry.

The association further questions whether some of the proposed national licensing measures could interfere with the constitutional responsibilities of county governments, which play a role in regulating alcohol licensing and trade.

ABAK wants Parliament to examine the division of responsibilities between national and county governments before introducing additional regulatory structures.

The association has urged Parliament and the government to pause the legislative process and engage county governments, regulators, public-health organisations, manufacturers, distributors and other stakeholders.

Kinyanjui said the proposed legislation requires further scrutiny before lawmakers advance it.

“We strongly urge Parliament not to advance the Bill in its current form. We encourage a transparent consultation process involving county governments, regulators, public-health stakeholders and the entire alcohol value chain,” she said.

ABAK has pointed to the government’s existing joint action plan against illicit alcohol and drugs, which the National Steering Committee on Combating Illicit Alcohol and Drugs, chaired by Deputy President Kithure Kindiki, is implementing.

The association argues that the government should strengthen existing enforcement efforts rather than introduce measures that could increase the operating costs of licensed businesses.

It also cited a 2025 Euromonitor International study on Kenya’s illicit alcohol market, which reportedly found that illicit alcohol accounted for approximately 60 per cent of the market by litres of alcohol equivalent.

According to the study figures cited by ABAK, illicit alcohol volumes increased by 27 per cent between 2022 and 2025, outpacing growth in the legitimate market.

The association says the findings demonstrate the scale of the challenge facing regulators and warn against policies that could make legal products less competitive.

ABAK says it remains willing to work with government agencies, public-health stakeholders and civil society organisations to develop measures that protect consumers while addressing harmful alcohol consumption.

The association maintains that regulation should balance public health objectives with the economic contribution of legitimate manufacturers, distributors and retailers.

“Our shared priority remains to protect consumers, preserve livelihoods and decisively tackle illicit alcohol,” Kinyanjui said.

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