Local manufacturers account for more than three-quarters of illicit alcohol seized in Kenya, with the Anti-Counterfeit Authority (ACA) putting the share at 77 per cent and warning that the trade has grown beyond the sale of counterfeit brands.
ACA CEO Robi King’a presented the figures on Thursday, September 10, during a session with the Senate Standing Committee on Information, Communication and Technology, where he outlined how digital tools and product tracking systems could help curb illegal alcohol and protect consumers.
According to the authority, only part of the illicit alcohol market involves counterfeit products. Other illegal products include alcohol affected by tax evasion, smuggled drinks, substandard and adulterated products, unlicensed artisanal alcohol and surrogate alcohol.
"The Committee was informed that the challenge of illicit alcohol extends beyond counterfeit products to include tax-leaked, smuggled, substandard, adulterated, unlicensed artisanal and surrogate alcohol, requiring a coordinated multi-agency response," the ACA said.
The authority said counterfeit alcohol should therefore not be viewed as covering the entire illicit alcohol trade, as criminals use different methods to produce, package and distribute unlawful products.
King’a told the committee that ACA seizure records showed locally made alcohol forming the largest portion of products confiscated for being illicit.
"He noted that ACA-cited seizure data indicated that 77 per cent of seized alcohol was locally manufactured, 15 per cent imported and eight per cent of unknown origin, although the Authority cautioned that the figures should not be treated as a nationally representative market share without the underlying methodology and cut-off date," the authority added.
The Senate committee also heard that those involved in the trade are increasingly finding ways to bypass measures meant to help identify genuine products.
Among the tactics being used are copying legitimate QR codes, reusing original bottles and labels, replacing the contents of genuine containers and manipulating digital accounts. Offenders are also said to be reusing valid serial numbers and promoting illicit products through social media and closed messaging platforms.
The ACA said fighting these practices would require more than a single authentication tool. It proposed the use of secure product identifiers, tamper-evident packaging, scan data, batch checks, systems for detecting unusual activity, cybersecurity measures, physical inspections and laboratory tests.
The authority warned against relying on QR codes alone, saying their presence on a product does not by itself prove that an alcoholic drink is genuine or safe.
"The Authority recommended that the Senate support a legislative and interoperable national authentication framework covering both imported and locally manufactured high-risk alcoholic products, while ensuring that the digital framework forms part of a broader multi-agency strategy to address illicit alcohol," the ACA stated.
The meeting further considered the Anti-Counterfeit Integrated Management System (AIMS), a digital platform used by the ACA for intellectual-property recordation, import-related declarations and other regulatory functions.
However, the authority said the platform does not provide a complete picture of the domestic alcohol sector and cannot on its own confirm several requirements that businesses must meet.
"The existing system does not comprehensively capture locally manufactured finished alcohol, local bottling, contract manufacturing, refilling, packaging suppliers and domestic distribution.
"AIMS also does not independently verify excise payment, chemical safety, standards compliance, premises licensing or lawful ethanol use," the ACA further said.
To close these gaps, the ACA proposed a gradual introduction of an anti-counterfeit security device for high-risk products, with alcoholic beverages among those targeted.
The proposed system would give each product a unique identifier connected to a protected record held by the authority. Consumers and enforcement officers would then be able to check the authenticity of products, while regulators could use information generated by the system to spot possible illegal activity.
"The system would enable consumers and enforcement agencies to verify the authenticity of products while generating data that could support detection of suspicious activity," the authority noted.
The ACA said the new system should support, rather than replace, the work already carried out by other regulators, including the Kenya Revenue Authority (KRA) and Kenya Bureau of Standards (KEBS).
Under the proposed arrangement, the ACA would handle product and brand verification, KRA would establish excise status, KEBS would confirm standards and certification, while county governments would provide licensing details.
"Under the proposed interoperable model, ACA would verify product and brand authenticity, KRA would confirm excise status, KEBS would verify standards and certification status, while county governments would provide licensing information," the ACA noted.
The authority said Parliament would need to amend existing legislation to allow the security-device system to cover prescribed locally manufactured products.
The proposed legal changes would also require local manufacturers, authorised bottlers and contract manufacturers involved in high-risk products to be formally registered.
"The proposed amendments would also provide for registration of local manufacturers, authorised bottlers and contract manufacturers, while establishing safeguards against cloning, tampering and unauthorised reuse of security devices," the authority said.