EABL CEO flags illicit alcohol as major threat in East Africa
By Faith Lagat, February 7, 2026East African Breweries Limited (EABL) Group Managing Director Jane Karuku has warned that 60% of all alcohol consumed in Kenya, Uganda, and Tanzania is now illicit, reversing years of dominance by formal brands.
The revelation came during an exclusive interview during a podcast show on February 6, 2026, highlighting a growing concern for public health, government revenues, and the formal alcohol industry.
Illicit trade surges across the region
Karuku cited a recent study across the three countries showing the illicit market had overtaken formal sales. “A few years ago we were at 50-50 or even 40-60, where 40% was illicit and 60% was formal. Now that has switched. 60% is illicit,” she said.
She emphasised that EABL currently reaches only 40% of the ecosystem.
The EABL CEO described the trend as alarming, pointing to multiple risks. Consumers face unsafe products that threaten public health, while governments lose tax revenue from unregulated production.
Karuku also noted economic damage, as illicit producers fail to support value chains that benefit farmers, transporters, distributors, and retailers.
Impact on formal sector and EABL performance
The illicit trade has direct consequences for EABL’s revenues. “Imagine if our results today were accessing even 10% more of that market – it would have been very, very different,” Karuku said.
Her warning came amid strong half-
year financial results for the group, with profit after tax rising 38%, driven by 8% volume growth across beer, spirits, and innovations. Net sales and profitability grew faster than volumes, reflecting pricing strategies, cost efficiency, and targeted portfolio decisions.
Karuku credited EABL’s resilience to a wide brand range, spanning premium labels such as Johnnie Walker Blue, mainstream brands, and value options like Senator and Chrome. She noted that East African consumers consistently seek social connection, flavour exploration, and value for money, which EABL continues to address through innovations.
Despite positive performance, Karuku stressed that sustainable growth hinges on addressing illicit alcohol and maintaining stable tax policies.
She praised Kenya’s move two years ago to stabilise beer excise duty, which enabled volume recovery, and urged similar regulatory stability across the region.