Setting up a craft beer brewery in Kenya is not for the faint-hearted. Entrepreneurs must navigate a labyrinth of regulatory requirements, with licensing alone taking up to 24 months.
These challenges, however, have not deterred Mark Genders, one the growing number of investors determined to tap into Kenya’s growing craft beer market.
Genders, an experienced brewer and former pub owner, never planned to enter Kenya’s beer industry.
His journey began 25 years ago when he moved to the UK to care for his daughter, who needed medical attention. While there, he ventured into the hospitality industry, eventually running 17 pubs and a brewery. The transition to brewing, he says, was a natural progression.
"We sold a lot of beer, so I thought—why not make my own?" he recalls.
He built INNformal Brewery from the ground up, refining his craft and developing unique beer profiles that resonated with consumers.
In 2019, while on holiday in Kenya, Genders met an old friend who shared his vision of launching a local craft brewery. The timing seemed perfect—until the Covid-19 pandemic disrupted their plans. Determined to test the market, they imported 46,000 cans of Hopsmith, his UK-based beer brand.
The response was promising, proving that a niche existed for high-quality craft beer.
However, setting up a physical brewery proved far more complex than anticipated.
"We applied for a licence, but the process was painfully slow. We were told it would take at least two years," Genders says.
Faced with bureaucratic delays, he and his partner explored contract brewing options, approaching Wananchi Breweries for a production deal.
Instead, the owner offered to sell them the entire brewery—an opportunity they seized, largely for the licences, which are notoriously difficult to obtain in Kenya.
Licensing challenge and bureaucracy
Unlike in the UK, where regulations are clear and timelines predictable, Genders says setting up a brewery in Kenya requires navigating layers of bureaucracy.
He acknowledges that strict regulations for alcoholic beverages are necessary, but believes the system disadvantages licensed producers while allowing unregulated, backstreet brewers to thrive.
"Licensed breweries account for only 5-6 percent of the alcohol consumed in Kenya," he explains. "Meanwhile, illicit alcohol makers operate without facing the same regulatory scrutiny."
Through industry lobbying, their subgroup within the Kenya Association of Manufacturers successfully negotiated a 50 percent tax reduction on craft beer. However, Genders argues that the playing field remains uneven.
"Excise duty on spirits is a quarter of what beer makers pay. That imbalance makes it harder for craft breweries to compete."
Building a craft beer market in Kenya Kenya’s beer market has long been dominated by mainstream lagers, making it challenging to introduce a premium, handcrafted product.
"For generations, beer drinkers have stuck to a few familiar brands. Craft beer, with its richer flavours and small-batch production, requires a mindset shift. It’s an education process," Genders says.
Despite these hurdles, he sees a growing appetite for craft beer, particularly among urban, middle-class consumers.
"Craft beer is expensive because we use high-quality ingredients—no sorghum, sugar, or syrup like mass-market brands. We brew with 100 percent whole grain, which makes a huge difference in taste and quality."
Yet, craft beer still accounts for less than one percent of the market. To expand, Wananchi Breweries whose brands include Wananchi Lager, American Pale Pale, West Coast IPA, and Coffee Milk Stout, has focused on strategic branding, bar activations, and sampling events.
"It’s about creating a community around craft beer," he explains. "Unlike mass-market lagers, craft beer is an experience—people want to learn about the process, the ingredients, the story behind each brew."
Scaling up production
Since acquiring Wananchi Breweries, Genders has doubled its capacity from 10,000 litres to 20,000 litres. With beer taking 2.5 weeks to mature, they now produce 2,000 litres per day.
Wananchi Breweries Limited Director Mark Gender during an interview at the company in Ruaraka on February 5, 2025.
Photo credit: Dennis Onsongo | Nation Media Group
However, expanding further requires balancing supply and demand. "Many brewers struggle because they scale up too quickly without ensuring steady sales. We’re focusing on high-volume outlets—hotels, restaurants, and bars—while shifting smaller venues from draft to bottled products for cost efficiency."
The cost of brewing
While one of Kenya’s biggest brewer owns its own malting plant and enjoys tax advantages for using local barley, Genders has no choice but to import 100 percent of his ingredients.
"We source our malt from the Czech Republic, Germany, and South Africa," he explains. "'Hops can’t grow here—they require at least 14 hours of sunlight, which Kenya’s equatorial location doesn’t provide."
Beyond ingredients, infrastructure costs are another major burden.
"Water is crucial for brewing, yet we only get it three days a week. To keep production running, we’ve invested in large storage tanks and a 14-stage filtration system—a costly but necessary addition."
Regulatory barriers and market Competition
The regulatory landscape remains a challenge. One requirement mandates breweries to install flow meters and cameras, a system Genders describes as impractical.
"It’s supposed to monitor production, but no one actually logs in to check the data. Worse, we’re forced to buy these devices from a specific supplier. Some regulations make sense, but others seem arbitrary."
He also faces competition from larger brewers that use their market influence to squeeze out smaller players.
"Big brands offer bar owners incentives not to stock craft beer. It’s not a level playing field, but we’re not trying to replace them—we’re simply offering consumers more choice."
Lessons and future of craft beer
Reflecting on his experience in the UK, Genders sees potential for craft beer growth in Kenya. The Covid-19 pandemic, he notes, reshaped drinking habits abroad, encouraging consumers to explore new flavors and order directly from breweries.
"That shift opened up the craft beer market in a big way. The same could happen here as people seek more variety."
His key takeaway from years in the industry? Consistency is everything.
"Stick to your vision. Be consistent with your product, your marketing, and how you run your business. Consumers appreciate reliability."
For those considering entering the craft beer industry, Genders says the investment is significant—but not impossible.
"With Sh200 million, you can start a craft brewery. But beyond the money, you need patience and a deep passion for brewing."
As Kenya’s craft beer scene slowly gains traction, Genders remains optimistic.
"It’s no longer just about the big brewers. Consumers now have a choice. And that’s a good thing."
