ABAK Calls for Withdrawal of Alcohol Control Amendment Bill, Citing Jobs and Revenue Risks
The association says proposed changes could increase compliance costs for legitimate businesses and push consumers towards illicit alcohol.
The Alcoholic Beverages Association of Kenya (ABAK) is calling for the withdrawal of the Alcoholic Drinks and Drugs Control Laws (Amendment) Bill, 2026.
The Bill was introduced in the National Assembly at First Reading. However, ABAK says its proposals could threaten jobs, reduce government revenue and place additional pressure on legitimate alcohol businesses.
The association also warns that some measures could push consumers towards unsafe illicit alcohol.
ABAK says it supports efforts to prevent alcohol-related harm and combat illicit trade. However, it wants regulation to be proportionate, evidence-based and informed by meaningful consultation.
It has called for discussions involving county governments, legitimate businesses, public-health stakeholders and other affected parties.
Proposed Changes Raise Industry Concerns
The Bill proposes to increase the minimum drinking age from 18 to 21. It also introduces restrictions on alcohol sales in supermarkets, restaurants and online platforms.
Other proposals include a KSh2 per litre solatium levy on legitimate manufacturers. The Bill would also introduce additional national licensing and product registration requirements.
In addition, it proposes limits on alcohol transportation hours. It also seeks to establish a new committee to approve advertising and promotions.
ABAK Chair Kui Kinyanjui says the proposals could weaken legitimate businesses at a time when the industry is already facing pressure from illicit alcohol providers.
She warned that the changes could affect jobs and planned investments. They could also reduce government revenue and expose consumers to greater harm.
ABAK Estimates Potential Impact on Jobs and Revenue
Preliminary industry modelling by ABAK estimates that raising the minimum drinking age could put several economic activities at risk.
The association projects potential losses of KSh3.3 billion in annual retail and hospitality revenue. It also estimates that government tax revenue could fall by KSh1.8 billion.
Furthermore, the proposal could put 8,960 jobs and 1,792 licensed outlets at risk, according to the modelling.
The proposed levy could add another KSh1.3 billion in annual costs for legitimate manufacturers. ABAK says this could widen the price gap between regulated products and cheaper illicit alternatives.
The association also estimates that the proposed age limit would restrict access for about three million Kenyans aged between 18 and 21.
It warns that some consumers could turn to informal and unregulated channels to access alcohol.
Concerns Over Licensing and Sales Restrictions
ABAK is also concerned about the proposed regulatory structures. It says additional licensing, registration and advertising approval requirements could duplicate existing systems.
The association further argues that the Bill could encroach on the constitutional mandates of county governments over alcohol licensing and regulation.
Another proposal would limit alcohol distribution to between 6.00 a.m. and 6.00 p.m. ABAK says this could disrupt supply chains and increase logistics costs.
It also raises concerns about the impact on Kenya’s ambition to build a 24-hour economy.
Meanwhile, blanket restrictions on supermarket and online alcohol sales could affect legitimate businesses. ABAK warns that they could also shift consumer demand towards informal markets.
Illicit Alcohol Remains a Major Concern
The association points to a 2025 Euromonitor International study on Kenya’s illicit alcohol market.
The study found that illicit alcohol accounted for approximately 60% of Kenya’s total alcohol market by litres of alcohol equivalent. It also reported that illicit volumes had increased by 27% since 2022.
ABAK says the proposed changes could create further challenges for legitimate manufacturers while leaving room for illicit operators to expand.
The association has also cited the joint action plan being implemented by the National Steering Committee on Combating Illicit Alcohol and Drugs, chaired by Deputy President Prof. Kithure Kindiki.
It says the government should build on existing efforts to tackle illicit alcohol rather than introduce overlapping regulatory structures.
Association Calls for Consultation
ABAK is urging Parliament and the Government to pause consideration of the Bill in its current form.
Kinyanjui has called for a transparent consultation process involving county governments, regulators, public-health stakeholders and businesses across the alcohol value chain.
The association says it remains ready to work with government agencies, civil society and public-health stakeholders to reduce harmful consumption and address illicit alcohol.
It maintains that regulation should protect consumers while supporting legitimate businesses, preserving jobs and safeguarding public revenue.
