Ethyl alcohol market in Kenya

Earlier Report Observations

From 2018 to 2019, the ethyl alcohol market in Kenya remained stable at around 19 million liters annually, with domestic production accounting for 6.5–7.7 million liters. The market was characterized by the dominance of state-owned and large local manufacturers, who focused on sugar-based beverages for distilled liquors. In 2020, the COVID-19 pandemic disrupted supply chains and consumption, causing the market volume to dip to 18.9 million liters and production to fall to 5.7 million liters.

From 2021 onward, the market entered a phase of rapid expansion, reaching 53.7 million liters in 2023. This growth was driven almost entirely by imports, which soared from 20.6 million liters in 2021 to 52.7 million liters in 2023. Meanwhile, local production contracted to just 3.0 million liters. Global factors such as supply chain bottlenecks and volatile raw material prices raised production costs, making imported ethyl alcohol more competitive. In 2023, proposed regulatory changes under the Finance Bill 2024—including higher excise duties on distilled spirits and the introduction of a 3% import levy on certain alcoholic products—added further cost pressures on domestic manufacturers, accelerating the reliance on imports.

Production ethyl alcohol in Kenya

In kind, 2017-2020, K l

Top producers of ethyl alcohol, 2017-2020

World map of production of ethyl alcohol, 2017-2020

In 2020, Kenya produced 5,684 thousand liters of ethyl alcohol, marking a 26.1% decrease compared to the previous year. Over the period from 2017 to 2020, production declined by 28.9%, with an average annual decrease of 10.8%. The most significant growth occurred in 2019, when production rose by 18.4%.

Annual dynamics of production in Kenya in kind, 2017-2020, K l

Exports ethyl alcohol from Kenya

Exports in kind, K l

Market performance showed notable fluctuations during this period. Export volumes varied significantly, with a 12.4-fold difference between the peak in 2017 and the low point in 2019. In 2020, Kenya exported 396 thousand liters of ethyl alcohol, representing a sharp increase of 47.5% from the previous year. The lowest export volume was recorded in 2019 at 268 thousand liters, while the largest decline occurred in 2018, dropping by 75.8%.

Annual dynamics of product's exports from Kenya in kind, 2017-2020, K l

From 2017 to 2020, Uganda, Tanzania, and the Democratic Republic of the Congo were the top buyers of ethyl alcohol from Kenya. Uganda accounted for 57.1% of exports in kind, Tanzania for 22.7%, and the Democratic Republic of the Congo for 12.7%. Together, these three countries represented 92.5% of Kenya's total ethyl alcohol exports in kind.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Kenya in kind, 2017-2020

Exports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. Export values fluctuated 13.7 times between the high in 2017 and the low in 2019. In 2020, Kenya exported 335 thousand US dollars worth of ethyl alcohol, showing a 55.8% increase from the previous year. The minimum value was recorded in 2019 at 215 thousand US dollars, with the largest decline also occurring in 2019, dropping by 78.4%.

Annual dynamics of product's exports from Kenya in value, 2017-2020, K $ US

Between 2017 and 2020, Uganda, the United Arab Emirates, and the Democratic Republic of the Congo led the structure of exports in value terms. Uganda accounted for 56.8% of exports in value, the United Arab Emirates for 13.2%, and the Democratic Republic of the Congo for 12.2%. Collectively, these three countries represented 82.1% of Kenya's total ethyl alcohol export flows in value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Kenya in value, 2017-2020

Imports ethyl alcohol to Kenya

Imports in kind, K l

After a two-year decrease, cross-border shipments of ethyl alcohol to Kenya increased. In 2020, Kenya imported 13,606 thousand liters of ethyl alcohol, corresponding to a solid increase of 13.0% compared to the previous year. Over the period from 2017 to 2020, imports decreased by 27.6%, equating to an average annual decline of 10.2%. The minimum import volume was recorded in 2019 at 12,046 thousand liters, while the largest decline occurred in 2018, dropping by 28.4%.

Annual dynamics of product's imports to Kenya in kind, 2017-2020, K l

Throughout 2017 to 2020, Mauritius, Tanzania, and India were the main sources for imports in kind of ethyl alcohol to Kenya. Mauritius accounted for 42.7% of imports in kind, Tanzania for 14.8%, and India for 14.7%. Together, these three countries represented 72.2% of Kenya's total ethyl alcohol import flows in kind.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Kenya in kind, 2017-2020

Imports in value, K $ US

After a two-year drop, the volume of ethyl alcohol imports to Kenya increased. In 2020, imports reached 12,360 thousand US dollars, indicating a moderate increase of 5.7% compared to 2019. Over the period from 2017 to 2020, imports decreased by 36.1%, with an average annual decline of 13.9%. The minimum value was recorded in 2019 at 11,689 thousand US dollars, while the largest decline occurred in 2018, dropping by 27.5%.

Annual dynamics of product's imports to Kenya in value, 2017-2020, K $ US

Throughout 2017 to 2020, Mauritius, Tanzania, and Uganda played the leading roles in imports in value terms of ethyl alcohol to Kenya. Mauritius accounted for 41.3% of imports in value, Tanzania for 15.2%, and Uganda for 13.4%. Collectively, these three countries represented 69.9% of Kenya's total ethyl alcohol import flows in value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Kenya in value, 2017-2020