NAIROBI, Kenya — Kenyans are reaching for illegal alcohol more than ever before—and not just by a sip. A new report shows that 60pc of all alcohol sold in the country is illicit, marking a dramatic surge in consumption that has regulators and health officials deeply concerned.
The study, conducted by Euromonitor International and commissioned by the Alcoholic Beverages Association of Kenya (ABAK), reveals a 27pc increase in the consumption of unregulated booze since 2022. The culprits? Soaring taxes on legal drinks, a thriving black market, and widespread access to homemade brews.
According to Eric Githua, ABAK’s chairperson, the illicit trade is doing more than damaging public health—it’s draining the country’s economy. “Illicits reduce the revenues for our great republic,” Githua said. “This country is losing its attractiveness to investors because of the scale of the problem.”
High Taxes, Low Trust, and a Thriving Black Market
If you’re wondering why your favorite legal drink costs as much as a dinner date, taxes might be to blame. The high excise duties slapped on regulated alcoholic beverages have made them unaffordable to many.
That gap in affordability has created an opening for counterfeit spirits, contraband imports, and traditional brews like chang’aa and busaa to flood the market.
These brews dominate by volume, but the big money is in fake commercial spirits, which often look just like the real deal—labels and all.
According to the report, tax leakage and smuggling, especially of ethanol, caused Kenya to lose a staggering Ksh.120 billion in revenue last year alone.
The issue is compounded by weak enforcement and a lack of regulations around ethanol, making it all too easy for rogue players to enter the game. The Association is now lobbying for tax reforms and tighter control of ethanol sales to curb the spike in illegal production.
Health Crisis Brewing Among Youth
While the economics are bleak, the health toll is even worse. Beverly Opora, Secretary of Administration at the Ministry of Interior, didn’t mince words: “The rise we all know has negatively impacted on our nation resulting in health challenges as well as deaths—and this has affected a very critical population of our nation, the youth.”
These cheap, unregulated alcoholic drinks often come with a hidden cost: poor quality control. Contaminated brews have led to hospitalizations and even fatalities. And with enforcement lagging behind the scale of production, much of this harmful alcohol remains just a few shillings away from the average Kenyan.
Can Regulation Catch Up With Reality?
Despite mounting losses and a public health time bomb, illicit alcohol remains more accessible than its legal counterpart. The underground market is no longer operating in the shadows—it’s thriving in broad daylight.
Unless taxes on legal alcohol are recalibrated and oversight of ethanol distribution is significantly tightened, the situation is only likely to worsen.
For now, the government faces a sobering challenge: stopping a runaway trade that’s not only robbing Kenya of revenue, but also endangering lives.
Meanwhile, if your drink is suspiciously cheap, you might want to think twice before taking that next swig.
