RETRAK is calling for coordinated enforcement against illicit goods supply networks.
The retailers’ association wants enforcement agencies to coordinate investigations, trace supply networks and publish progress on prosecutions and tax recovery.
The Retail Trade Association of Kenya (RETRAK) has urged an illicit trade crackdown targeting supply networks, not just retailers. It warned that shop-level seizures alone would not stop smuggled, counterfeit and untaxed goods reaching consumers.
RETRAK wants a joint enforcement plan involving the Kenya Revenue Authority, Anti-Counterfeit Authority, Kenya Bureau of Standards and National Police Service. It also called for a designated lead agency and clear deadlines for progress reports.
Chief Executive Officer Wambui Mbarire said investigators should trace suppliers, transporters, financiers and storage facilities after seizing goods. Following those connections, she said, would help disrupt distribution networks and prevent further deliveries.
Illicit trade crackdown must reach supply networks
To illustrate the scale of the problem, RETRAK cited a Kantar study on Kenya’s cigarette market. It estimated that illicit cigarettes held a 45.1 per cent market share in 2025, compared with 34.1 per cent in 2021.
The study estimated excise duty and VAT losses at KSh10.2 billion in 2025. Meanwhile, estimated losses across 2021–2025 reached KSh47 billion.
Figures the Anti-Counterfeit Authority presented to Parliament put illicit alcohol at approximately 59 per cent of consumption by volume. They also estimated an economic cost of KSh71 billion in 2022.
The authority’s latest firm-level survey found that counterfeits averaged 18 per cent of products across surveyed sectors. Within those findings, motor vehicle spare parts stood at 21 per cent and alcoholic drinks at 19 per cent.
Enforcement operations have also involved substantial seizures. The authority seized counterfeits worth more than KSh563 million during the first three quarters of the 2025/26 financial year.
KRA destroyed fake and illicit goods worth KSh218 million in July. It also recently intercepted nearly 100 tonnes of smuggled sugar in Lodwar and Marsabit.
Retailers seek verification tools and public accountability
Alongside enforcement, RETRAK wants practical tools for checking excise stamps and product authentication marks. It also seeks guidance on suspicious deliveries and safe reporting channels for shop workers and the public.
Mbarire said smugglers, counterfeiters and tax evaders undermine retailers who meet licensing requirements and source goods legitimately. She also warned that counterfeit alcohol threatens lives, while substandard vehicle parts can cause serious harm.
For greater accountability, the association wants regular updates on investigations, major suppliers, prosecutions and recovery of unpaid taxes. Mbarire urged sustained enforcement rather than isolated raids.
Retailers, however, must also check suppliers, retain purchase records and reject goods with unverifiable origins, RETRAK said. The association pledged to help regulators develop guidance and awareness programmes for businesses, including small traders.
