MELTA says licensed businesses are being placed at a disadvantage Medium & small Liquor Traders Association (MELTA) Kenya chairman Francis Mbogo /HANDOUT Medium & small Liquor Traders Association (MELTA) Kenya chairman Francis Mbogo /HANDOUT Kenya’s fight against illicit and counterfeit alcohol is increasingly shifting beyond retail outlets, with liquor traders calling for tighter controls across the entire alcohol supply chain to stop illegal products from reaching consumers.
The Medium and Small Liquor Traders Association (MELTA Kenya), which represents licensed liquor and hospitality traders, says weaknesses across the supply chain are allowing unlicensed, untaxed and unregulated alcohol products to compete with legitimate businesses.
The association says the problem cannot be addressed by targeting retailers alone, arguing that stronger controls are needed from the point products enter the country through distribution, transportation and wholesale channels to their eventual sale to consumers.
The concerns raise questions about how illicit alcohol moves through Kenya’s market, including the role of manufacturers, distributors, wholesalers, transporters, warehouses, border points and increasingly online channels. “This trade operates outside the law, bypassing quality controls and denying government its rightful tax revenue, while undercutting the thousands of licensed traders who operate legally and responsibly,” said MELTA Kenya chairman Francis Mbogo.
MELTA says licensed businesses are being placed at a disadvantage because they bear the cost of complying with tax, licensing and regulatory requirements while illegal operators can avoid such costs. “Our members operate within the law, and it is time government matched their compliance with real enforcement against those who don't,” he added.
The association's position comes as authorities continue to grapple with the circulation of counterfeit and illicit alcoholic products, which pose risks to consumers while depriving the government of taxes. The traders argue that licensed liquor stores, bars and hospitality establishments operate within a regulatory framework that requires them to obtain licences, comply with tax obligations and source products through legitimate channels.