The Alcoholic Beverages Association of Kenya (ABAK) has called for the withdrawal of a proposed law tightening alcohol controls , warning that the measures could put thousands of jobs at risk, hurt legitimate businesses and push consumers towards illicit drinks.
The lobby said raising the minimum drinking age from 18 to 21 could cost the retail and hospitality sectors Sh3.3 billion in annual revenue, alongside Sh1.8 billion in government tax collections.
ABAK further estimates that the proposed age limit could threaten 8,960 jobs and 1,792 licensed outlets, as the industry steps up opposition to the Alcoholic Drinks and Drugs Control Laws (Amendment) Bill, 2026.
The Bill was introduced in the National Assembly for First Reading on Thursday, November 5, setting the stage for parliamentary consideration of proposals that would significantly reshape the production, distribution, advertising and sale of alcoholic drinks.
On Friday, ABAK chairperson Kui Kinyanjui said the measures could weaken legitimate manufacturers and distributors while creating opportunities for unregulated operators to expand their businesses.
“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,” she said.
“This will affect thousands of jobs, affect planned investments, reduce government revenue and ultimately expose consumers to greater harm,” she added.
Kui Kinyanjui, the Chair, Alcoholic Beverages Association of Kenya (ABAK).
Photo credit: Pool
The association argues that restrictions on supermarkets, restaurants and online sales could reduce access to regulated products, particularly for consumers who currently purchase alcohol through formal retail and hospitality channels.
It also warns that the proposed Sh2-per-litre levy would impose an additional annual cost of about Sh1.3 billion on legitimate manufacturers, potentially widening the price difference between taxed products and cheaper illicit alternatives.
“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,” said Ms Kinyanjui.
“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.”
The industry's opposition comes against the backdrop of a large illicit alcohol market that has increasingly challenged legitimate manufacturers and the government's efforts to collect taxes from the sector.
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 study also estimated that the government lost about Sh120 billion in potential revenue in 2024 through illicit alcohol activities, including smuggling, counterfeiting and tax evasion.
The Anti-Counterfeit Authority has also weighed in on the findings, with the industry repeatedly warning that illegal products are taking market share from licensed manufacturers and distributors.
ABAK argues that restrictions on legitimate sales outlets could accelerate this shift by making regulated products less accessible while informal sellers continue operating outside the licensing and tax system.
In July 2025, the Government launched the National Policy for the Prevention, Management and Control of Alcohol, Drugs and Substance Abuse, which proposed raising the minimum age for handling, purchasing, consuming and selling alcohol to 21 years.
The policy also proposed restrictions on alcohol sales through supermarkets, online platforms and home deliveries, alongside tighter controls on advertising, promotions and the location of alcohol outlets.
The new Bill seeks to translate several of these proposals into changes to the Alcoholic Drinks Control Act, which currently prohibits the sale or supply of alcohol to people below 18 years.
Government officials have 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 has cited concerns about alcohol consumption among university students and the need to protect young people from harmful drinking.
A 2025 NACADA survey of university students found that 87.3 per cent of respondents consumed alcohol, making it the most commonly used substance among the students surveyed.
