60% of alcohol in the market is illicit - EABL CEO Jane Karuku warns

In an interview with The Trading Bell, Karuku revealed that a recent study conducted by EABL across Kenya, Uganda, and Tanzania shows that illicit alcohol now dominates a larger portion of the market than in previous years.

According to the study, 60 per cent of alcohol consumed in the region is illicit.

“A few years ago we were on the 50/50 or 40/60, where 40% was illicit and 60% formal. Today, we are accessing only 40% of the ecosystem, which for me is a worry,” she said.

Karuku emphasised that the trend poses significant health risks, with consumers increasingly exposed to unsafe and unregulated alcohol. “Our consumers are not getting safe brands or safe alcohol. So that's a health issue,” she noted.

The economic implications are equally concerning, with Karuku explaining that the government loses out on crucial tax revenue, while the illicit sector disrupts integrated value chains that support farmers, distributors, and transporters.

“If you are illicit, you’re not doing things in the market that get the whole integrated value chain in the ecosystem to grow the economy, not just in your category but for example farmers, trade distributors, or even trucks to deliver this stuff,” she said.

Her warning comes amid ongoing efforts to regulate alcohol markets in the region, with EABL calling for stronger enforcement measures to curb illegal production and distribution.

“The direction this is going is worrying,” Karuku concluded. “It is not sustainable, it is not tenable, and it is something we must address urgently for the health of consumers and the health of the economy.”

On consumer behaviour, Karuku highlighted that “connect moments” are a key driver behind drinking trends.

“One of the biggest consumer drivers is what we call ‘connect moments or motivations’. Our consumers like to go somewhere and connect with each other. When we are thinking about our brands and where we would want to be, we look at those ‘connect moments’ and then superimpose that with the right brand, right occasion, and the razzmatazz—are we giving you a brand with bells and whistles?”