Two traders in Kenya have recently been charged for involvement in the illegal trade of alcohol affixed with counterfeit excise duty stamps, marking significant steps in the ongoing efforts by the Kenya Revenue Authority (KRA) and other government agencies to combat tax evasion, illicit alcohol manufacturing, and the distribution of counterfeit products.
The first case involves Naomi Jepchirchir Kimutai, who was arrested in Trans-Nzoia County on 13th November 2024. Kimutai, who runs Cheers Wines within Kachibora Shopping Centre in Cherangany, was found in possession of excisable goods that bore counterfeit excise stamps. The goods included 303 bottles of 250ml Smart Vodka, 357 cartons containing 20 bottles each of 250ml Magic Times Spirit, 11 bottles of 250ml Tycoon Vodka, and 580 bottles of 250ml African Special Vodka. These items were sealed in 43 cartons labeled as KWAL (Kenya Wine Agencies Limited) products, though none of the alcohol had any legitimate association with the manufacturer.
The total tax implication for the counterfeit goods in her possession was estimated at Ksh 149,322. Despite the serious nature of the offense, Kimutai denied the charges and was released on a bond of Ksh 60,000 or a cash bail of Ksh 25,000. The case is set to be mentioned in Kitale Law Courts on 15th January 2025. This case highlights the rising concerns over counterfeit products within the alcohol industry, which not only lead to significant tax losses but also pose serious health risks to consumers.
In a similar case, Michael Mbugua Kamau, another liquor trader, was charged on 2nd December 2024 at Gatundu Law Courts for possession of illicit alcohol. Kamau, who operates Lucky Pot Distributors in Karai, Kiambu County, was found with 64 crates, each containing 25 bottles of 500ml “Apple Ice Vodka.” These products, too, bore counterfeit excise stamps, violating the provisions of the Excise Duty Act 2015. The total value of the illicit liquor was estimated at Ksh 405,136. Kamau denied the charges and was granted cash bail of Ksh 200,000 or an alternative bond of Ksh 500,000. His case will be mentioned on 6th January 2025.
These two incidents reflect a growing trend of illicit trade in counterfeit alcohol, which undermines the Kenyan government’s efforts to collect taxes and regulate the alcohol industry. The involvement of counterfeit excise stamps has become a key issue for the KRA, as they play a central role in ensuring that manufacturers and traders pay the correct excise duties on alcohol products. Counterfeit stamps not only result in tax evasion but also exacerbate the risks associated with unregulated alcohol, which can be harmful to public health.
The KRA, in partnership with other enforcement agencies, has ramped up its efforts to tackle the illegal trade of counterfeit alcohol. A multi-agency team is working tirelessly to track down unscrupulous traders involved in the illegal manufacturing of alcohol, smuggling of raw materials like ethanol, and the distribution of counterfeit goods. These illicit activities severely undermine the legitimate alcohol industry, depriving the government of crucial revenue that could be used to fund public services, and potentially endanger the health and safety of consumers.
The ongoing efforts to clamp down on counterfeit alcohol also serve as a reminder of the importance of ensuring that consumers purchase alcohol from licensed and reputable sources. The distribution of counterfeit products poses not only a financial threat but also a public health risk, as substandard ingredients or harmful chemicals may be used in the production of counterfeit alcohol. As the government continues to address these challenges, the public is urged to remain vigilant and report any suspicious activities involving counterfeit goods.
The legal proceedings in the cases of Naomi Jepchirchir Kimutai and Michael Mbugua Kamau will likely set a precedent in the ongoing fight against the illegal alcohol trade, and the KRA’s commitment to safeguarding the integrity of Kenya’s excise tax system remains unwavering.
