ABAK CALLS FOR WITHDRAWAL OF THE ALCOHOL CONTROL AMENDMENT BILL

The Alcoholic Beverages Association of Kenya (ABAK) is calling for the withdrawal of the Alcoholic Drinks and Drugs Control Laws (Amendment) Bill, 2026, which was introduced in the National Assembly in its First Reading yesterday.

ABAK warns that the Bill, in its current form, could threaten thousands of jobs, reduce government revenue, undermine legitimate businesses and drive consumers towards unsafe illicit alcohol.

ABAK supports effective measures to prevent alcohol-related harm and combat illicit trade.

However, regulation must be proportionate, evidence-based and developed through meaningful consultation with county governments, legitimate businesses, public-health stakeholders and other affected parties.

While noting the commendable joint action plan against illicit alcohol currently under implementation by the National Steering Committee on Combating Illicit Alcohol and Drugs chaired by Prof. Kithure Kindiki, Deputy President of the Republic of Kenya, ABAK notes that the proposed Bill will disproportionately increase compliance burdens for legitimate alcohol manufacturers while potentially enabling more illicit alcohol players to thrive.

Specifically, the Bill proposes an increase in the minimum drinking age from 18 to 21. It adds restrictions on supermarket, restaurant and online alcohol sales which will impact Kenya’s tourism and growing e-commerce sector. It also introduces a Kes 2 per litre solatium levy for legitimate manufacturers, adds duplicate national licensing and product registration requirements, provides limits on alcohol transportation hours, and introduces a new committee to approve advertising and promotions.

“Coming at a time when our industry is under significant pressure from illicit alcohol providers, this Bill risks weakening legitimate businesses while creating more room for illicit alcohol to flourish. This will affect thousands of jobs, affect planned investments, reduce government

revenue and ultimately expose consumers to greater harm,” said Kui Kinyanjui, Chair, ABAK.

Preliminary industry modelling indicates that increasing the minimum drinking age could put at risk approximately Kes3.3 billion in annual retail and hospitality revenues, Kes1.8 billion in government tax revenue, 8,960 jobs and 1,792 licensed outlets.

The proposed levy could impose an additional Kes1.3 billion annual burden on the legitimate industry, significantly increasing the price gap between regulated products and cheaper illicit alternatives. In addition, while restricting access for an estimated three million Kenyan adults

aged between 18 and 21 years of age, the Bill could inadvertently spur the growth of unregulated and informal channels as the age group attempts to access alcohol.

“The tabling of this Bill in the National Assembly makes it urgent for Parliament and the Government to pause and consider its far-reaching consequences. We strongly urge Parliament not to advance the Bill in its current form. We encourage a transparent consultation process

involving county governments, regulators, public-health stakeholders and the entire alcohol value chain. Our shared priority remains to protect consumers, preserve livelihoods and decisively tackle illicit alcohol,” said Ms. Kinyanjui.

ABAK is particularly concerned that the Bill would replicate existing regulatory structures and potentially encroach on constitutional mandates over alcohol licensing and regulation.

By requiring alcohol distribution to take place only between 6.00 a.m. and 6.00 p.m., the Bill would disrupt legitimate supply chains, increase logistics costs and raise conflicts with Kenya’s ambition to build a 24-hour economy. Blanket restrictions on supermarket and online sales could

also reduce access to regulated products and shift demand towards informal markets.

The establishment of additional licensing, registration and advertising approval structures would increase compliance costs without clear evidence that existing regulatory frameworks are inadequate.

ABAK remains ready to work constructively with relevant government agencies, public health stakeholders and civil society to develop practical measures that reduce harmful consumption and eliminate illicit alcohol.

A 2025 Euromonitor International study on Kenya’s illicit alcohol market found that illicit alcohol has grown to approximately 60% of Kenya’s total alcohol market by litres of alcohol equivalent (LAE), with illicit volumes increasing 27% since 2022 and growing faster than the legal market.

Balanced regulation should protect consumers, support legitimate enterprise, preserve jobs and safeguard public revenue.