According to a recent research, Kenya loses an average of Sh71 billion in taxes yearly as a result of the development of the sale of illicit alcohol in the nation.
The Alcoholic Beverages Association of Kenya (ABAK) hired Euromonitor Consulting to conduct a study on the effects of illegal alcohol on the economy.
The research states that illegal alcohol sales have expanded significantly in value since 2020 to reach over Sh67 billion, showing their greater availability and rising popularity, particularly in low-income settlements.
The non-compliance with tax and excise legislation has contributed to the appeal of illegal alcoholic beverages, which are frequently supplied at a cheaper price than legal drinks.
One of the reasons why illicit alcohol has become more affordable has been attributed to the low cost of illicit beverages, high taxes, expensive raw materials to produce safe alcohol, as well as easy accessibility through street vendors, licensed liquor stores, grocery retailers, bars, and other hospitality outlets.
The mass-market, high-volume brands, which include a mix of mid-market and luxury alcohol brands, are the prime targets for counterfeiting. Cider and beer of the highest caliber follow them.
Due to rising demand from illegal producers of commercial alcohol, illegal dealers are likewise keen on ethanol. Insufficient border patrols, rampant corruption, and unmanned entry points throughout Kenya's borders, according to Quinton Walker, Senior Consultant at Euromonitor International, continue to give illicit traders a safe haven to conduct their activity.
The research suggests enforcing the law to make it unlawful for anybody to participate in the production, distribution, or sale through authorized or unauthorized channels would be deemed to have engaged in criminal behavior and will be subject to legal sanctions.
Additionally, it urges the expansion of consumer education initiatives that emphasize the negative impacts of unlawful alcohol use on human health. This will serve as a deterrent and aid in lowering participation in illicit alcoholic beverage manufacture.