RETRAK decries rising illicit trade in cigarettes, alcohol and counterfeit goods
A recent Kantar study estimates that illicit cigarettes accounted for 45.1 per cent of Kenya’s cigarette market in 2025, up from 34.1 per cent in 2021. The trade is estimated to have cost the government KSh10.2 billion in excise duty and VAT in 2025, and KSh47 billion between 2021 and 2025.
The Retail Trade Association of Kenya (RETRAK) has expressed concern over the growing trade in illicit cigarettes, alcohol, and counterfeit goods. The association is urging a coordinated enforcement effort involving the Kenya Revenue Authority (KRA), Anti-Counterfeit Authority (ACA), Kenya Bureau of Standards (KEBS), and National Police Service to dismantle the supply networks behind this illegal business.
RETRAK's CEO, Wambui Mbarire, emphasized that enforcement agencies must move beyond retail seizures and investigate the entire supply chain, from suppliers to financiers, to effectively disrupt the illicit networks.
Statistics highlight the scale of the problem: illicit cigarettes now make up 45.1% of Kenya's cigarette market, up from 34.1% in 2021, costing the government KSh10.2 billion in excise duty and VAT in 2025 alone. Illicit alcohol constitutes approximately 59% of alcohol consumed by volume, with an economic cost of KSh71 billion in 2022, while counterfeit goods account for an average of 18% of products in various sectors.
Recent enforcement operations, such as the seizure of counterfeit goods valued at over KSh563 million and the destruction of fake goods worth KSh218 million, illustrate the ongoing challenge.
RETRAK is calling for practical tools to help retailers verify product authenticity and clear guidance on handling suspicious deliveries. They also seek transparent progress reports from enforcement agencies, including tracing major suppliers, prosecutions, and the recovery of unpaid taxes. Mbarire stressed that legitimate retailers are at a disadvantage when competing with smugglers, counterfeiters, and tax evaders, who evade taxes and regulatory requirements.
This unfair competition undermines compliant businesses, threatens jobs, and exposes consumers to dangerous products.
The association emphasizes the need for a sustained, accountable response rather than isolated raids, demanding that enforcement agencies make their results public, including progress in bringing offenders to justice. RETRAK affirmed that retailers must conduct due diligence on suppliers and reject products with unverified origins, expressing readiness to collaborate with regulators and enforcement agencies to develop guidance and awareness programs for all retailers, including small traders.
They warn that illicit trade poses significant public safety risks, particularly through counterfeit alcohol and fake vehicle parts, which can endanger lives and cause serious harm.
Written by urgent.news from Capital FM Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
