Overview: The Alcoholic Beverages Association of Kenya has formally opposed the Alcoholic Drinks and Drugs Control Laws (Amendment) Bill, 2026. Industry leaders warn that proposed restrictions could jeopardize legitimate businesses and accelerate reliance on illicit alcohol markets.
The Full Story
The National Assembly introduced the Bill for First Reading on November 5, setting a stage for significant regulatory changes. Proposed measures include raising the minimum drinking age from 18 to 21, restricting sales in supermarkets, banning online deliveries, and imposing a Sh2 levy per litre. ABAK chairperson Kui Kinyanjui stated that these measures could weaken legitimate manufacturers while creating opportunities for unregulated operators. The association estimates the proposed age limit threatens 8,960 jobs and 1,792 licensed outlets.
Financially, the lobby warns of Sh3.3 billion in annual revenue loss for retail and hospitality sectors, alongside Sh1.8 billion in government tax collections. ABAK further notes the levy would add about Sh1.3 billion in annual costs to manufacturers. Context regarding illicit trade highlights the industry’s concerns. A 2025 Euromonitor study commissioned by ABAK estimated that illicit alcohol accounted for 60 per cent of Kenya’s alcohol market by volume in 2024, with volumes increasing 27 per cent between 2022 and 2024. The government lost approximately Sh120 billion in potential revenue in 2024 due to illicit activities including smuggling and tax evasion. The Anti-Counterfeit Authority has also weighed in on the findings, noting illegal products are taking market share from licensed manufacturers.
What This Means
Restrictions on legitimate sales outlets could accelerate the shift toward unregulated products by making taxed items less accessible while informal sellers continue operating outside the licensing system. Government officials previously defended the proposed age increase as a public-health intervention aimed at reducing young people’s exposure to alcohol and substance abuse. The National Authority for the Campaign Against Alcohol and Drug Abuse cited concerns about consumption among university students, noting a 2025 survey found 87.3 per cent of respondents consumed alcohol.
Consumer Takeaway
This legislative development directly impacts consumer access to regulated products versus illicit alternatives. The industry argues that restrictions on supermarkets and online sales could reduce access for consumers who currently purchase through formal retail channels. Ultimately, the debate centers on balancing public health goals with the preservation of livelihoods and the decisive tackling of illicit alcohol.
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