EABL CEO Jane Karuku Warns Illicit Alcohol Now 60% of East Africa Market

East African Breweries Limited (EABL) CEO Jane Karuku has warned that illicit alcohol has surged to “alarming levels” across the region, now accounting for 60 percent of the total alcohol market in East Africa.

Speaking in an interview with The Trading Bell, Karuku said the balance has shifted sharply in just a few years. Where the market once stood at roughly 40 percent illicit versus 60 percent formal, a new study covering Kenya, Uganda, and Tanzania shows legitimate brewers now control only 40 percent of the ecosystem.

Public Health Threat Deepens

Karuku said the biggest danger is not business competition, but public health. She warned that consumers are increasingly being exposed to unsafe and unregulated drinks, many of which contain harmful substances.

“Our consumers are not getting safe brands or safe alcohol,” Karuku said, adding that some illicit products are “toxic concoctions” often laced with dangerous chemicals such as methanol a substance linked to blindness, organ failure, and death.

The Alcoholic Beverages Association of Kenya (ABAK) has previously noted that while many consumers understand the risks, economic hardship continues to push them toward cheap illicit brews.

Kenya Losing Billions in Taxes

Beyond the health crisis, Karuku said the illicit trade is draining government revenue and weakening the formal economy.

She cited estimates showing Kenya loses about Sh71 billion annually in uncollected taxes due to the underground alcohol market.

Karuku also warned that the illicit industry does not support the structured value chain that sustains thousands of livelihoods in the legal sector. EABL says the formal ecosystem supports more than 60,000 farmers, distributors, transporters, and traders.

Mainstream Sales Hit as Consumers Switch

Karuku linked the rise of illicit alcohol to changing consumer behavior, especially among low-income households.

EABL’s recent financial performance has shown a slump in mainstream spirit sales, including popular brands such as Chrome and Uganda Waragi, as price-sensitive consumers shift to untaxed alternatives.

Crackdowns Intensify, But Policy Concerns Raised

The warning comes as Kenyan authorities intensify enforcement operations in hotspots such as Mount Kenya and Uasin Gishu, where police have seized counterfeit spirits worth millions of shillings in recent weeks.

However, Karuku urged regulators to pursue a balanced approach, warning that overly restrictive alcohol policies, including proposals linked to agencies such as NACADA, could unintentionally drive more consumers into the illicit market.

She called for stronger enforcement, consumer education, and fair regulation that protects public health without pushing legal products out of reach for ordinary Kenyans.