Kenya battles counterfeit and illicit alcoholic drinks

NAIROBI - The State’s spirited crackdown on “killer drinks” mid2015 resulting in the closure of distilleries and breweries was hailed a major success.

Two years on, however, the illicit brands are slowly finding their way back into the market.

While the fight against illicit and counterfeit alcoholic drinks saw millions of litres of such drinks confiscated and destroyed, dealers are now back into brisk business - making the crackdown appear as if it was only a public relations campaign.

Numerous brands that authorities exorcised from the market in the 2015 crackdown are back on the shelves, while some manufacturers have reintroduced their drinks under different brand names.

Unscrupulous business operators are also recycling used bottles from legit players to package their substandard products.

They are using fake Kenya Bureau of Standards tax stamps to get their products on the shelves. In addition, alcoholic drinks packed in sachets are also back in the local market, despite being banned more than a decade ago.

These add to the problems experienced by the economy, Government revenue collection and loss of market by genuine industry players.

The illicit alcoholic industry has been blamed for crippling economic activities in certain regions across the country, with many young people turning to drinking binge - neglecting income generating activities.

While there is no official data on the illicit industry given its illegal nature, it is denying the Government tax revenues that could be running into billions of shillings annually, with some quarters estimating that the exchequer could be losing up to Sh30 billion in unpaid revenues.

Legit players in the industry have also experienced a loss in market share leading to foregone revenues, with the industry estimated to be commanding a sizeable 30 per cent of the market.