60% Illicit Alcohol Dominates East African Market, EABL CEO Warns of Health and Economic Risks

Illicit alcohol now makes up the majority of drinks consumed in East Africa, according to East African Breweries Limited (EABL) CEO Jane Karuku. She says the growth of unregulated alcohol poses serious health risks and threatens the region’s economy.

In a recent interview, Karuku revealed that a study across Kenya, Uganda, and Tanzania found that 60% of alcohol in the market is illicit. “A few years ago, we were on a 50/50 or 40/60 split. Today, we are only reaching 40% of the ecosystem. That is worrying,” she said.

The health implications are serious. Consumers face unsafe, unregulated alcohol that can harm their bodies. Karuku explained that people drinking illicit alcohol are not guaranteed safe production standards, which raises the risk of poisoning and other illnesses.

The economic impact is also concerning. Illicit alcohol avoids taxes, depriving governments of revenue. It also disrupts the integrated value chain that supports farmers, distributors, transporters, and other stakeholders. “If you operate illicitly, you are not helping the economy. Farmers, distributors, and transporters lose out,” she said.

Karuku called for urgent government intervention. Stronger enforcement is needed to curb illegal alcohol production and distribution. She warned that the current trend is unsustainable and must be addressed immediately for the health of consumers and the economy.

Consumer habits also influence alcohol trends. Karuku highlighted “connect moments”; times when people meet and socialise as a key driver of alcohol consumption. Brands that match these occasions with the right experience tend to succeed in the market.

Flavoured drinks are also gaining popularity. “We are seeing a lot of exploration. Flavour is exploding. Consumers want new experiences. Lemon, ginger, and spicy drinks are trending,” she noted. This shows a shift in preferences, with consumers seeking variety and innovation.

Karuku’s warning comes at a time when regulators in East Africa are struggling to manage illegal alcohol. The rise of illicit products threatens public health, diminishes government revenue, and undermines formal businesses.

EABL urges policymakers, law enforcement, and industry players to act quickly. Ensuring safe, regulated alcohol is available is critical for protecting consumers, supporting local economies, and sustaining growth in the region’s alcohol market.

The CEO concluded: “We must act now. The health of consumers and the economy depends on it.”