Retailers demand tougher enforcement as illicit trade threatens Kenyan businesses

Nairobi, Kenya – Kenyan retailers are demanding stronger government action to combat illicit trade, which they say is threatening their businesses, jobs, and consumer safety. The Retail Trade Association of Kenya (RETRAK) argues that enforcement agencies should shift their focus from seizing counterfeit goods at stores to investigating the networks behind the trade.

RETRAK CEO Wambui Wamwiri highlighted that illicit trade is not limited to borders or hidden markets but is now affecting everyday commerce, impacting products like cigarettes, alcohol, cosmetics, and pharmaceuticals. She called for five measures, including coordinated intelligence-led enforcement, stronger supply chain investigations, product authentication systems for retailers, public-private collaboration, and accountability through publicly reported results.

RETRAK also wants retailers to have accessible tools to verify excise stamps, authentication marks, and supplier documentation, while ensuring they can reject goods with untraceable origins. Meanwhile, Michael Muthami, chairman of the Pubs, Entertainment and Restaurants Association of Kenya (PERAK), stressed that the country does not need new legislation but stronger enforcement of existing laws.

He questioned whether proposed changes, such as raising the legal drinking age from 18 to 21, would effectively tackle illicit alcohol trade. Muthami suggested forming a national multi-agency forum to tackle smuggling, corruption, and border enforcement weaknesses. These concerns come after research by Kantar, commissioned by British American Tobacco Kenya, found that illicit cigarettes accounted for 45% of the market in 2025, up from 34% in 2021, leading to annual revenue losses of Sh10.2 billion.

The Anti-Counterfeit Authority also reported that illicit alcohol contributed to 59% of consumption, causing an estimated Sh71 billion in economic losses in 2022.