The fight against illicit alcohol in Kenya is more urgent today than ever considering the social and economic burdens passed onto communities through its enhanced sale, distribution and consumption. Economic pressures affecting consumer spending power due to the prevailing economic hardships continue to act as a catalyst that propel the success of mushrooming underground markets that sell illicit brews to an ever-willing clientele base.
Alcohol consumption offers multifaceted benefits. Its sale contributes to the socio-economic development of the country through revenue income whilst offering a spark that brings people together for enjoyment and celebration. At the same time, excessive consumption of alcohol or drinking substandard liquor bears major drawbacks that are a threat to public health. Unfortunately, the latter is a stark reality that we face today due to suppressed buying power.
The country has for many years faced the consequences of alcohol abuse and addiction as well as health risks, including death and blindness, which are caused by the consumption of unsafe illicit or counterfeit products.
Between 1998 and early 2000’s reports indicate that over 300 people died from consuming illicit brews. In February this year, 13 people died and scores were left blind after consuming illicit alcohol in Kirinyaga County, adding to a list of thousands who have suffered a similar fate in the country over the years.
This goes to show the extensive grip that illicit and counterfeit alcohol has on legitimate businesses and the State. For manufacturers and retailers, it comes with reputational risk, revenue, sales losses, and lost innovation and job creation opportunities as the illicit product traders benefit at the expense of legitimate businesses.
Illicit alcohol also causes direct revenue losses for the government and raises the health expenditure burden due to unsafe product consumption. It additionally erodes a country’s profile as an investment destination because no manufacturer would want to come to a market where there is unfair competition in favour of illegitimate businesses.
The latest Euromonitor International for the Alcoholic Beverages Association of Kenya study shows the value sales of illicit alcohol in Kenya accounted for 21 per cent of the total alcoholic drinks market in the country in 2022.
The research revealed that illicit alcohol sales stood at Sh67 billion in 2022 having strongly grown in value since 2020, reflecting its wider distribution and increased volume sales and consumption. Illicit alcohol volume sales of 898,478 hectolitres in 2022 comprised more than half or 59 per cent of all alcohol sales in Kenya.
This is very concerning and points to the need for a reinvigorated and sustained concerted effort by the public, manufacturers, and State and security agencies to weed out the menace threatening human lives and the country’s economy.
Global research by World Spirits Alliance (WSA) recommends a three-pronged approach to combating the illicit alcohol menace. First, it urges avoidance of barriers, restrictions, and excessive taxes, which make legitimate products too expensive and or inaccessible to consumers, fuelling demand for illicit trade. The WSA also recommends robust enforcement of existing rules and regulations and increased controls and penalties to reduce incentives to illicit traders.
Mr Munyi is the Head of Public Policy, Kenya Breweries Limited
