Kenya’s illicit alcohol market pushes local brewer to rethink business model

The move comes at a time when the scale of Kenya’s illicit alcohol market continues to raise concerns for consumers, legitimate manufacturers and government agencies.

In May 2026, the Anti-Counterfeit Authority (ACA), while appearing before Parliament on the production, distribution and consumption of illegal alcoholic brews, reported that illicit alcohol accounted for approximately 59 per cent of the market by volume and 21 per cent by value. The Authority also highlighted the growing challenges of falsified labels, misuse of protected brands and the refilling of genuine bottles with unsafe products.

The concern remains current. In a multi-agency operation conducted across eight Nairobi sub-counties between August 20 and 31, 2026, NACADA reported the arrest of 11 people and the seizure of counterfeit alcoholic products, including products bearing counterfeit KRA excise stamps, uncoded alcoholic products and expired beverages.

For legitimate manufacturers, the growing illicit market presents a challenge that extends beyond lost sales. It raises questions around consumer confidence, product authenticity and the ability of consumers to distinguish genuine products from counterfeit or illegally produced alternatives.

Against this backdrop, Crywan Products is investing in a more hands-on approach to market development, combining grassroots activations with direct sales engagement and the identification of legitimate retail outlets.

The company recently conducted a market activation in Mwihoko, near Kahawa Sukari, where its team engaged retailers and consumers across the area and reached seven retail outlets stocking or engaging with its Kingston portfolio.

The Mwihoko half day activation generated sales of 23 cartons in just Mwihoko, across different product categories, with 17 cartons, approximately 74 per cent, directly moved by Crywan’s field sales team on the ground.

Beyond the immediate sales, the exercise provided Crywan with an opportunity to identify potential retail partners, understand local consumer preferences and establish relationships with outlets that can provide consumers with access to genuine products.

Early feedback from the activation showed encouraging reception for Kingston Coconut and Brandy, giving the company further insight into the products gaining traction within the market.

For Crywan, the approach is part of a broader effort to expand its legitimate retail footprint rather than relying solely on traditional distribution routes.

“The conversation around counterfeit and illicit alcohol has made the issue of trust increasingly important within our industry. As a manufacturer, we believe our responsibility does not end when a product leaves the factory. We have to understand where our products are going, build relationships with legitimate retailers and make it easier for consumers to access genuine products through trusted channels,” said Faith Mbithe, Sales Coordinator at Crywan Enterprises Limited.

“Our Mwihoko activation is an example of this approach. We were able to reach seven outlets, move 23 cartons and, more importantly, identify opportunities for sustained retail relationships. Our sales team was directly responsible for moving 17 of those cartons, demonstrating the value of having our people on the ground and engaging directly with the market.”

The challenge facing legitimate alcohol manufacturers is not insignificant.

The ACA’s 2025 firm-level survey on counterfeiting found that alcoholic beverages had an estimated 19 per cent prevalence of counterfeiting, the highest among the sectors covered by the study alongside automotive spare parts.

The survey also found that 53 per cent of firms reported an increase in counterfeit incidences over the previous year, citing factors including demand for cheaper products, inadequate enforcement and economic pressures.

The Authority has separately identified the refilling of genuine bottles as one of the challenges complicating efforts to combat illicit alcohol — meaning that the presence of genuine-looking packaging alone may not always guarantee that the contents originated from the legitimate manufacturer.

Recent enforcement activity has demonstrated the scale of the problem. In January 2026, the Kenya Revenue Authority intercepted 5,000 litres of suspected illicit ethanol near Nairobi’s SGR corridor. KRA estimated that the consignment could have produced approximately 48,200 bottles if compounded and released into the market.

For legitimate players, this makes the relationship between manufacturer, distributor, retailer and consumer increasingly important.

Crywan says its strategy is therefore focused on strengthening this chain through closer engagement with the market.

The Mwihoko activation is expected to form part of a wider push to identify and work with retail outlets where Crywan can establish sustainable relationships and improve the availability of its products.

The company says its field teams will continue engaging outlets, gathering market intelligence and identifying areas where its products can build a stronger presence.

Crywan has been in operation since 2007 and currently lists its products across a network that it says reaches 40 of Kenya’s 47 counties. Its portfolio includes Kingston Vodka, Kingston Vodka Coconut, Visa Vodka, Visa Brandy, Vennice Vodka and Grand Label Whisky.

The company’s focus on grassroots market development is therefore intended not only to generate sales, but also to strengthen its understanding of the retailers and consumers it serves.

“The next phase for us is about building sustainable relationships, not simply entering a market and leaving. Every activation gives us an opportunity to understand the retailer, understand the consumer and identify where there is genuine demand. That information allows us to make better decisions about where and how we grow,” added Ruth Kavesu, Ruiru Sales Rep at Crywan Enterprises Limited.

As Kenya’s authorities continue to intensify enforcement against counterfeit and illicit alcohol, Crywan believes legitimate manufacturers, retailers and consumers all have a role to play in strengthening the legitimate alcohol value chain.

For Crywan, that begins with being closer to the market — and building trusted retail relationships one outlet at a time.