The Retail Trade Association of Kenya (RETRAK) is calling for decisive, coordinated action against illicit trade, urging enforcement agencies to move beyond seizures at retail outlets and dismantle the supply networks behind smuggled, counterfeit and untaxed goods.
RETRAK, whose members include, large and small retailers, is urging the Kenya Revenue Authority (KRA), Anti-Counterfeit Authority (ACA), Kenya Bureau of Standards (KEBS) and National Police Service to agree on a joint enforcement plan, identify the lead agency and publish a clear timeline for reporting progress.
“Seizing illicit products from a shop is only the beginning. Investigators must establish who supplied the goods, where they were stored, who transported them and who financed the consignment. Following that trail is how we disrupt the networks and prevent the next delivery,” said RETRAK Chief Executive Officer Wambui Mbarire.
The scale of the challenge is substantial. A recent Kantar study estimates that illicit cigarettes accounted for 45.1% of Kenya’s cigarette market in 2025, up from 34.1% in 2021, with estimated excise duty and VAT losses of KSh 10.2 billion in 2025 and KSh 47 billion over the 2021–2025 period.
Figures presented to Parliament by the ACA indicate that illicit alcohol represents approximately 59% of alcohol consumed in Kenya by volume, with an estimated economic cost of KSh 71 billion in 2022.
The ACA’s latest firm-level survey found that counterfeit goods accounted for an average of 18% of products in the sectors surveyed, including 21% of motor vehicle spare parts and 19% of alcoholic drinks.
Enforcement activity underscores the problem: the ACA seized counterfeit goods valued at more than KSh 563 million in the first three quarters of the 2025/26 financial year, while KRA destroyed fake and illicit goods worth KSh 218 million in July and recently intercepted nearly 100 tonnes of smuggled sugar in Lodwar and Marsabit.
RETRAK is calling for practical tools to help retailers verify excise stamps and product authentication marks, rapid guidance when suspicious deliveries are identified, and safe, accessible channels through which shop staff and the public can report suspected illicit goods and receive information on follow-up action.
“Retailers who meet licensing requirements, keep proper records and source goods legitimately cannot compete fairly against operators supplied by smugglers, counterfeiters and tax evaders. Illicit trade undermines compliant businesses, puts jobs at risk and exposes consumers to dangerous products,” said Mbarire.
The association also wants enforcement outcomes made visible, including progress in tracing major suppliers, prosecutions and recovery of unpaid taxes.
“We need an accountable, sustained response not isolated raids. Kenyans deserve to know whether investigations are reaching the sources of illicit products and whether offenders are being brought to justice,” Mbarire added.
RETRAK reaffirmed that retailers have a responsibility to conduct supplier due diligence, retain invoices and reject products of unverifiable origin. The association is ready to work with regulators and enforcement agencies to develop clear guidance and awareness programmes for retailers of all sizes, including small traders.
“This is more than lost revenue or unfair competition. Counterfeit alcohol can threaten lives, and fake vehicle parts can cause serious harm. Tackling illicit trade protects consumers, llegitimate businesses, jobs and public finances,” Mbarire concluded.
