How counterfeit alcohol is quietly taking over Kenya's market

A recent study by the Anti-Counterfeit Authority (ACA) has Kenyans thinking twice before sipping their liquor at a sundowner.

The consumer level survey report has been on the headlines since its June 18 release, and notes that more than half of the alcohol consumed in Kenya is counterfeit.

Wine topped ACA’s list with the highest prevalence of counterfeiting at 50.12 per cent of total instances, followed by beer at 47.44 per cent, whiskey (42.68 per cent) and vodka (36.95 per cent).

Rum was at 32.44 per cent, tequila at 28.41 per cent, while more alcohol products showed slightly less counterfeiting rates- gin (23.05 per cent), brandy (19.27 per cent), liqueurs (11.71 per cent) and craft spirits (11.22 per cent).

The alarming study has wine industry executives up in arms looking to understand how such a complex product can be faked; and spoiler, it turns out that we use the word counterfeit while also referring to contraband, or illicit.

This means that while there are instances where law breakers do make their own illicit brews, counterfeit also means “illegally imported” or “tax evading”.

Judy Ngene, the Chief Executive of Galina, a wine importing company that has been in operation for over 14 years says: “We source our wines from origin, and everything importers sell here has to go through a very thorough process even before they pass through customs at the port.”

“That’s why many in the local wine industry were caught by surprise by that report. Because we were wondering if verification is done at the point of origin and yet again by Kenya Bureau of Standards (KEBS), how can wines be fake in a non-wine producing country?”

Ngene notes that wine comes with a lot of prowess, education and knowledge, and that this expertise is essential when importers are choosing the right product to bring into the country.

“Almost everyone in the wine community has gone through the relevant courses at different levels, so as sommeliers we know what to look out for in terms of quality.”

“People have learnt that you need to have the knowledge if you are in the business of wine. The wine making process is so complex because of the process that it goes through.”

When asked if there is a chance that there are brewers of “fake wine”, she challenges the narrative, citing that it is difficult to create the drink.

“If at all there is any fake wine, I would advice wine lovers to attend wine events hosted by importers and wine producers and get to know more about the real drink.”

Ngene says if one fears consuming wine after this report, but had an interest, they should consider going to these events and purchase directly from the importer. 

Importing wine requires those in the business to acquire a certificate of analysis and a certificate of conformity. These ascertain the components in the wine as per specific parameters.

“Maybe there are people who will drive trucks from South Africa, bring them into the country and sneak them in without declaration to cut costs. Perhaps that contraband loophole is what has been captured on the report.”

Joy Adero, a Sommelier, Member of Team Wine Kenya and vice chair of Sommeliers of Kenya Association (Soka) says the report is shocking for the wine community.

“Fifty per cent is a huge percentage. That would mean that for every bottle there's a fake one," she says.

"For that to happen, it would mean that no one in the supply chain is doing their job, including us Sommeliers. And that's just not the case.

"However, I am still willing to see which brands they found to be counterfeit and where.”

A sommelier is a wine professional who specialises in wine service including create wine lists and coordinating food pairings.

ACA’s report highlights the dangers of counterfeit goods. They pose health risks as well as spoil market integrity.

“It threatens not only consumer safety but also legitimate businesses, emphasising the need for stronger regulatory measures, heightened consumer awareness, and collaboration among stakeholders to combat counterfeiting in the alcoholic beverages market.”

Tom Muteti, ACA’s Head of Public Communication tells Sunday Standard that the consumer level survey report was a countrywide study conducted as part of the Authority's mandate.

“We periodically carry out such. The purpose is to inform police and advise government.

"For this particular study, we partnered with Kenya College of Accountancy and also Kenya Association of Manufacturers. As a body, we combat counterfeiting in two ways.”

There is an Anti-counterfeit Act that criminalises counterfeiting, Muteti says.

“That tries to address the supply side—anyone in the production, trade and distribution. Those in contravention face a jail term of up to five years and, or a fine of minimum of three times the value of the goods.”

The second way ACA handles counterfeiting is by creating public awareness, working with consumer organisations, media and through public outreach.

Muteti says one of the major loopholes in the fight against counterfeiting is consumer indifference.

“You find some people still buying counterfeit goods even though they know there is an issue… there is a passive nature. It is an underground crime, and it is hard to curb because traders are looking to make high returns, say by evading tax.

"There are also porous borders in the country, however much we try to control entry at the port.”

On wine topping the counterfeit list, he says, “most probably, consumers who gave the responses to the study were also speaking about the smuggling in of the product.”

“Counterfeiting and smuggling are all illicit trade, and are more or less related. We are also talking about trademark issues.”

Alcoholic Beverages Association of Kenya (Abak) chairman Eric Githua says the ACA study mirrors others conducted over the years.

“In 2018, there was a World Health Organisation report that indicated that 44 per cent of alcohol sold in Kenya is illicit.

"Post that, we worked with an internationally recognized firm and the government agencies and did our own report reflecting on 2022 numbers.”

He says they found that 59 per cent of the alcohol sold in Kenya is illicit.

"Now, this year in May, Abak produced another industrywide report and identified that this grew by one per cent to 60. Meaning that six in every 10 bottles are illicit.”

Githua further notes that illicit could mean counterfeit, tax-evaded, sub-standard, or made in unregulated areas.

“Not all illicit products are counterfeit, basically. So, we recognise and appreciate that the government, through its law enforcement agencies, has done a lot to ensure that this is curbed,” he says.

“For wine, it will definitely be more contraband or tax evaded. There is a lot of tax evasion in the wine industry, and that is what is hurting our country.”

He adds: “Sometimes, the word counterfeit in our country is loosely translated to mean illicit. So you’ll find there are places people say ‘this is fake’ but they mean it’s tax evaded.”

The Abak chairman offers tips to consumers when it comes to identifying the right product to consume and differentiating between what is “fake” and what is good to drink.

“Kenya revenue Authority have a tax stamp, and they have an application called Soma Label which is an authentication downloaded on Android or IOS.

"The best advice at a consumer level is, at least scan the tax stamp and it will be able to tell you who the manufacturer is, and if imported, the importer," he says.”

“Most likely, a counterfeit product will not have a tax stamp.”