Nairobi — The country is losing more than KSh 120 billion annually in tax revenue due to the widespread trade in illicit alcohol, Members of Parliament have been told, underscoring the growing scale of the underground market and its deepening economic and public health implications.
The figure was presented before the National Assembly Public Petitions Committee during deliberations on a petition by Uasin Gishu Woman Representative Gladys Boss, which seeks to address the production, distribution and consumption of illicit brews in the country (Public Petition No. 02 of 2026).
The Committee engaged stakeholders from the Alcoholic Beverages Association of Kenya (ABAK), the Anti-Counterfeit Authority (ACA), and the Kenya Association of Manufacturers (KAM), who painted a grim picture of a thriving illicit market that continues to evade enforcement systems.
ABAK told MPs that illicit alcohol now accounts for approximately 6 per cent of Kenya's total alcohol market, giving illegal operators a significant competitive edge by avoiding taxation and regulatory compliance.
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The association warned that the situation has distorted the industry, allowing counterfeit and unregulated products to undercut legitimate manufacturers while posing serious health risks to consumers.
ABAK Chairperson Ms. Kui Kinyanjui called for urgent and coordinated enforcement action across multiple state agencies.
"We are calling for an immediate nationwide multi-agency crackdown involving the Kenya Revenue Authority, National Police Service, Kenya Bureau of Standards, Anti-Counterfeit Authority, as well as national and county governments to shut down unlicensed outlets and counterfeit operations," she said.
She further proposed the introduction of mandatory KRA excise stamps and a digital track-and-trace system for all alcoholic products, including second-generation brews, to help verify authenticity from production to point of sale.
The Anti-Counterfeit Authority Chief Executive Officer, Dr. Robi King'a, identified porous borders as a major enabler of the illicit trade, citing several entry points frequently used for smuggling.
These include Isibania, Shimoni, Busia, Mbale, Malaba, Lwakhakha, Namanga, Lunga Lunga, and Moyale, which he said are routinely exploited to ferry in illegal spirits and ethanol.
Dr. King'a also pointed to weak coordination among enforcement agencies, saying the absence of a statutory framework with clear performance indicators and joint reporting structures continues to undermine efforts.
He cited fragmented operations among agencies such as the Kenya Revenue Authority (KRA), Kenya Bureau of Standards (KEBS), ACA, NACADA, Government Chemist, Kenya Sugar Board, Directorate of Criminal Investigations (DCI), Office of the Director of Public Prosecutions (ODPP), and county governments.
"I urge this Committee to consider enacting a Multi-Agency Committee on Illicit Trade Act, or alternatively amending the Anti-Counterfeit Act, to establish a permanent inter-agency body anchored in law," he said.
Committee member Beatrice Elachi (Dagoretti North) questioned the Authority on concrete interventions, particularly in Uasin Gishu County, which has been highlighted as a key hotspot in the petition.
Dr. King'a said the Authority has already established an operational office in Eldoret and rolled out a rapid response initiative targeting the region.
"Within the next two months, we aim to decisively tackle the illegal alcohol problem in collaboration with non-governmental actors, national government officials, county commissioners, and local administrators," he said.
He added that intensified public awareness campaigns are also underway, following recent outreach programmes in Nakuru, Bungoma, and Kakamega, with Uasin Gishu next in line.
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The Kenya Association of Manufacturers (KAM) attributed the growth of illicit alcohol to severe market distortions, arguing that legal products are heavily taxed and tightly regulated, while illicit brews operate outside the law at significantly lower costs.
Simon Githuku, Head of Policy and Regulatory Advocacy at KAM, urged the government to reinstate digital tracking for locally produced ethanol and establish a permanent multi-agency task force on illicit trade.
He proposed that the task force be anchored under the State Department for Trade and report directly to the Office of the President or Deputy President.
"This approach will establish a sustainable framework to combat illicit trade while safeguarding national economic, social, and public health interests," he said.
Committee Chairperson Muchangi Karemba (Runyenjes) emphasized that sustained political goodwill is essential if the country is to effectively dismantle illicit alcohol networks and protect both public revenue and consumer safety.
