Kenyans are now drinking more illegal alcohol than legally produced beverages, a new report shows, as rising prices and accessibility challenges push consumers underground.
But while affordability remains the main driver, the surge in illicit alcohol use is raising alarm over growing public health risks—from fatal ethanol fortification to widespread bacterial contamination.
According to research commissioned by the Alcoholic Beverages Association of Kenya (Abak) and conducted by Euromonitor International, the average Kenyan adult consumes 3.6 litres of pure illicit alcohol per year, compared to 2.5 litres of legal alcohol. This equates to roughly three glasses of wine, three cans of beer, or five shots of spirits per week.
A worrying 2.4 litres of the illicit alcohol consumed is brewed illegally at home, classified as illicit artisanal alcohol.
Over 95 percent of the illicit alcohol is spirits, often in the form of home-distilled brews like chang’aa or alcohol refilled in counterfeit branded bottles, especially popular brands.
“Local brews such as muratina and chang’aa are popular and much more affordable than legal alcohol. Illicit artisanal homebrew increased its share to 67 percent,” said Abak.
Affordability is the key driver. Among 1,008 Kenyans surveyed, 73 percent admitted they knowingly consume illicit alcohol, but they are looking for affordable alternatives regardless of where the drink originates from.
The report paints a bleak picture for government tax collectors. Kenya lost Sh80.7 billion in revenue in 2024 due to illicit artisanal brews alone.
Tax leakage from undeclared or under-declared alcohol sales contributed Sh72.5 billion more, while counterfeit alcohol brands caused an additional Sh64 billion in losses. Alcohol smuggled into the country accounted for a further Sh23 billion in lost revenue.
These figures expose a parallel underground industry that is both highly organised and increasingly commercial. Artisanal brews like busaa and chang’aa are now being produced on a scale that rivals legitimate manufacturers, boosted by cultural acceptance and minimal barriers to entry.
“The attractiveness of producing spirits without excise duty is high,” said an official from the Kenya Revenue Authority. “The use of professional bottling eases the penetration of counterfeit spirits into the formal alcohol market.”
The surge in illicit consumption coincides with rising excise taxes on legal alcohol, which has made mainstream drinks unaffordable for many low-income households. As a result, many turn to homemade or illegally sourced alternatives.
Small and medium-sized distilleries are also feeling the pinch. New excise regulations, including high ethanol prices and mounting tax debts, have further squeezed legitimate producers. The suspension of alcohol manufacturing licenses in March 2024 only deepened the problem, creating space for illegal operations to flourish.
“Illicit brews increased in 2024, driven by rising prices of legal alcohol,” the report says. Muratina and chang’aa now dominate the illicit market, accounting for two-thirds of all illegal volumes sold.
The report identifies Nairobi, Murang’a, and Kiambu counties as the hotspots for illegal alcohol access. Urban centres, border towns, and low-income settlements are particularly vulnerable. Unga, a powdered beer concentrate used in brewing, has also seen a surge in sales across various regions.
Cross-border smuggling adds to the complexity. Ethanol imported illegally from Uganda and Tanzania has spiked dramatically, costing the country Sh8.6 billion in lost taxes in 2024 alone—up from Sh3.5 billion in 2022.
Health Risks
Beyond lost taxes and competition for legitimate businesses, the rise in illicit alcohol also poses a significant public health risk. Some brewers reportedly fortify their drinks with ethanol to increase potency, a practice that can be fatal.
“Some brewers use ethanol to fortify artisanal beers, increasing their potency but also raising health risks,” said Benjamin Rideout, global project manager at Euromonitor International.
Mainstream brands like Chrome Vodka and Gilbey’s Gin have also been hit by counterfeiters, with knock-offs widely available in local bars and shops.
While enforcement agencies continue to crack down on illegal distilleries and counterfeits, the underlying issue remains unresolved: for millions of Kenyans, legal alcohol is simply too expensive.
“A major challenge in the down-trading by consumers is the accessibility to contraband spirits from Uganda and Tanzania, as well as the increase in the counterfeiting of popular spirits brands,” said Eric Githua, chairman of Abak.
