The rapid growth of illicit alcohol across East Africa is raising serious alarm over public health, lost government revenue, and economic disruption. East African Breweries Limited (EABL) Chief Executive Officer Jane Karuku has warned that illegal brews are now dominating the regional alcohol market, posing a major challenge to both regulators and industry players. Speaking during an interview on The Trading Bell, Karuku shared findings from a recent EABL‑commissioned study covering Kenya, Uganda, and Tanzania.
According to the study, illicit alcohol accounts for approximately 60 per cent of all alcohol consumed in the region, a sharp rise compared to previous years. Karuku noted that the formal alcohol sector has been steadily losing market share. A few years ago, the split between legal and illegal alcohol stood closer to balance, but the situation has since deteriorated, with licensed manufacturers now controlling a significantly smaller portion of the market. She described the trend as deeply worrying for the sustainability of the regulated industry.
Public Health Risks
One of the most pressing concerns raised is the threat to consumer safety. Illicit alcohol is often produced without adherence to safety standards, exposing consumers to dangerous substances and unregulated brewing processes. Karuku warned that many drinkers are unknowingly consuming unsafe products due to affordability and accessibility. The proliferation of such drinks increases the risk of poisoning, long‑term health complications, and in extreme cases, fatalities.
Economic Impact and Revenue Loss
Beyond health risks, the illicit trade is also draining government coffers. Karuku explained that illegal alcohol producers do not pay taxes or levies, leading to significant revenue losses for governments that rely on excise duty collections from the alcohol sector. She added that the illicit ecosystem fails to support the broader economic value chain tied to the formal industry.
Key sectors affected include:
- Farmers supplying raw materials
- Distributors and wholesalers
- Retail traders
- Logistics and transport providers
Without tax compliance and structured supply chains, the economic multiplier effect of the alcohol industry is greatly weakened.
Call for Stronger Enforcement
EABL is now calling for enhanced regulatory enforcement to curb illegal alcohol production and distribution. Karuku stressed the need for coordinated action involving governments, law enforcement agencies, and industry stakeholders to dismantle illicit networks and protect consumers. She warned that if left unchecked, the trend could further destabilize both the economy and public health systems.
Understanding Consumer Drinking Trends
Karuku also shed light on evolving consumer behavior within the alcohol market. She highlighted the role of what the company terms “connect moments”, social occasions where consumers gather to bond, celebrate, or unwind — as a major driver of drinking habits. Brands, she explained, are increasingly being positioned around these experiences, aligning products with specific occasions and social settings.
Rise of Flavoured Alcoholic Beverages
Another notable shift is the growing demand for flavoured drinks. Consumers are showing greater interest in experimenting with taste, prompting innovation in product development. Flavour‑infused options such as citrus, ginger, and spice variants are gaining popularity, reflecting changing preferences and lifestyle trends. This wave of experimentation is shaping new product lines within the formal alcohol sector as companies compete to meet evolving consumer expectations.
Conclusion
The surge in illicit alcohol consumption across East Africa presents a complex challenge touching on health, governance, and economic stability. While shifting consumer tastes continue to influence the formal market, industry leaders warn that urgent intervention is needed to contain illegal trade. Addressing the crisis will require stricter enforcement, public awareness, and collaborative regional action to safeguard consumers and protect economic value chains.
