Kenya’s illicit alcohol market was valued at an estimated Sh160 billion in 2024, with tax leakage accounting for the largest share, according to Euromonitor International data.
The data shows that tax leakage accounted for an estimated 73 billion litres of high-level alcohol equivalent (HL LAE), followed by counterfeit and illicit brands at 64 billion.
Traditional alcoholic beverages accounted for about 770,000 HL LAE, while smuggling and contraband made up the smallest share at about 80,000 HL LAE.
Despite recording the lowest volume, illicit value sales from smuggled and contraband alcohol were estimated at Sh23 billion.
The findings highlight the scale of Kenya’s illicit alcohol trade and the significant losses associated with products that bypass taxes, counterfeit established brands or enter the country through illegal channels.
The illicit market has remained a major concern for authorities, who have stepped up enforcement against illegal alcohol manufacturers, distributors and traders.
The government has also intensified efforts to curb the sale of unsafe and unregulated alcoholic drinks.
