The Kenyan government is facing a significant revenue loss of Sh71 billion annually due to the thriving illegal alcohol trade in the country. According to a recent report by Euromonitor International, 59% of the alcohol consumed in Kenya is illegal, resulting in a massive loss of revenue for the government.

The report highlights that the increased manufacture of illicit booze is attributed to high taxes on legitimate products, which raises the cost of genuine brands. This has led to a massive boom in the illegal alcohol trade, with Kenyans consuming more illegal alcohol than ever before.

Zack Munyi, chairperson of the Alcoholic Beverages Association of Kenya's (ABAK) public policy committee, expressed concern over the public health burden associated with the consumption of illicit liquor. He noted that an earlier study by the World Health Organization in 2018 estimated the prevalence of illegal booze at 40%, which means that out of 10 beers bought, six are likely to be illegal.

Munyi attributed the increased manufacture of illicit booze to high taxes, which surpass a certain threshold and become detrimental to the industry. He cited an example of 250 ml spirits products, where about 51% of the price of legitimate products goes to taxes. While he emphasized that the industry has no issues paying taxes, he believes that the high tax rates are driving the illegal trade.

Samuel Matano, the chairperson of the Alcohol and Beverages Association, pointed out another reason why the illegal trade of alcohol is thriving in Kenya. He believes that the slap-on-the-wrist penalties handed out to offenders by the courts are not deterrent enough, allowing them to continue their illegal activities. Matano advocated for a relook at the criminal justice system to make the punishment for such offenses more punitive.

The report's findings have significant implications for the Kenyan government, which is losing a substantial amount of revenue annually due to the illegal alcohol trade. The government needs to reexamine its tax policies and consider reducing the tax burden on legitimate products to discourage the illegal trade. Additionally, the government must work to strengthen its law enforcement efforts to combat the illegal trade and protect public health.

In conclusion, the illegal alcohol trade in Kenya is a pressing issue that requires immediate attention from the government and stakeholders in the industry. The high tax rates on legitimate products are driving the illegal trade, which not only results in revenue loss but also poses a significant public health burden. It is essential to address this issue through a combination of tax policy reforms and strengthened law enforcement efforts.