Nairobi:The Retail Trade Association of Kenya (RETRAK) has issued a significant warning regarding the increasing volume of illicit trade in the country. The organization cautioned that the prevalence of counterfeit and smuggled goods poses a threat to consumer safety, damages compliant businesses, and results in substantial financial losses for the national treasury.
According to Kenya News Agency, RETRAK Chief Executive Officer Wambui Mbarire called for an overhaul in the enforcement strategy during a press briefing in Nairobi. She urged state authorities to focus on dismantling multi-million-shilling supply networks at their origin instead of primarily targeting retail outlets.
Mbarire highlighted that illicit trade has permeated everyday commerce, affecting products like cigarettes, alcohol, cosmetics, clothing, and motor vehicle spare parts. She emphasized the challenge faced by legitimate businesses in competing while illicit operators benefit from an unfair advantage. RETRAK also presented concerning statistics on the market penetration of illicit goods in key commercial sectors.
The Association cited research by Kantar, revealing that illicit cigarettes accounted for 45.1 per cent of Kenya’s market in 2025, a rise from 34.1 per cent in 2021. This increase corresponded to about 1.9 billion illicit units consumed annually, leading to an estimated Sh10.2 billion loss in excise duty and VAT for 2025, with total lost tax revenue from 2021 to 2025 amounting to Sh47 billion.
In the alcohol sector, figures from the Anti-Counterfeit Authority indicate that illicit alcohol constitutes approximately 59 per cent of the total consumption volume, causing an annual economic loss of Sh71 billion and presenting severe public health risks. Counterfeit penetration averages 18 per cent across surveyed sectors, with higher rates in automotive spare parts and alcoholic beverages.
Mbarire stressed the financial burden on compliant retailers due to high regulatory costs and the unfair competition posed by untaxed illegal goods. She also noted the potential fatal consequences for consumers associated with counterfeit vehicle parts or illicit alcohol.
Despite acknowledging the efforts of the Kenya Revenue Authority, Anti-Counterfeit Authority, Kenya Bureau of Standards, and the National Police Service, Mbarire insisted that current measures are insufficient. RETRAK proposed five key interventions, including the formation of a structured, intelligence-led inter-agency team, upstream enforcement, equipping retailers with digital tools, enhancing public-private intelligence collaboration, and implementing metrics to track supplier prosecutions and revenue recovery.
Mbarire concluded by advocating for investigations that trace illicit products back to their manufacturers or importers, stressing the need for comprehensive enforcement beyond the retail level. RETRAK reaffirmed its members’ commitment to due diligence and urged the government to collaborate with retailers as partners in restoring market integrity.
