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 has multifaceted impacts. Its sale contributes to the socio-economic development of the country through revenue income although excessive consumption, especially of substandard liquor bears major drawbacks that are a threat to public health.
Unfortunately, the latter is a stark reality we face today due to suppressed buying power. As a responsible business in Kenya that is aligned with the government’s effort to fight against the sale and consumption of illicit brew, we are dedicated to providing a sustainable alcohol beverage that appeals to the section of low-income consumers who continue to be held captive by the throes of illicit alcohol.
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 iillicit 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 or supplier would want to come to a market where there is unfair competition in favour of illegitimate businesses.
The latest study by Euromonitor International for the Alcoholic Beverages Association of Kenya (ABAK) shows that the value sales of illicit alcohol in Kenya accounted for 21 percent 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 percent 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 economic well-being and profile.
Global research by the World Spirits Alliance (WSA), for example, recommends a three-pronged approach to combating the illicit alcohol menace. First, it urges for 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 – including in the e-commerce environment to reduce incentives to illicit traders.
The lobby further urges awareness-raising campaigns amongst the general adult population on the dangers and forms of illicit alcohol, including elements to help consumers identify potentially illicit products, in partnership with the private sector.
These suggestions are sensible and if reinforced can end the illicit alcohol mess. For instance, we at East African Breweries Limited (EABL) have long taken cognisance of the price differential between legal and illicit alcohol products and the risks of fanning illegal trade.
This informed the launch of the sorghum-infused Senator Keg brand in 2004 to cater for the low-earner groups and keep them off the cheap but deadly illicit products.
The product has been impactful in the low-cost market segment even though we reported a marginal three percent dip in sales as of June 2024 which indicates that counterfeit drinks are gradually gaining market share due to inadequate surveillance.
The war against illicit alcohol is far from over. The industry players should step up the fight against through cooperation and intelligence-sharing with law enforcement and tax authorities.
Additionally, we should curate more partnerships between the government and private sector to ensure that we protect lives, investments and economy by locking out the illicit traders.
The writer is the Head of Public Policy, Kenya Breweries Limited
