Kenya is taking bold steps to address rising concerns around alcohol consumption in the country by raising the legal drinking age from 18 to 21.
A 2022 study found that 1 in 20 Kenyans aged 15–65, about 1.3 million people, struggle with alcohol addiction. Among university students, a staggering 87% consume alcohol, according to a NACADA, 2023 report.
The World Bank’s May 2025 review went further, urging Kenya to raise excise taxes on alcohol, cigarettes, and sugary drinks, warning that these products account for nearly 1 in 10 deaths in the country, far above the regional average.
The planned policy is among several stringent measures outlined in the National Policy on the Prevention of Alcohol, Drugs, and Substance Use (2025), recently approved by Cabinet but not yet enacted into law.
According to the BBC, the proposed regulation is one of the strictest the country has ever introduced, with wide-ranging implications for businesses across industries.
At ETK Group, our decades of experience supporting clients with African market entry and expansion have shown us that long-term success requires anticipating regulatory and social shifts. Businesses that are serious about thriving in one of the world’s fastest-growing consumer markets must be ready to adapt quickly and strategically.
What is Changing?
Regulatory environments in Africa are changing fast, with higher compliance costs and disruptions to sales and distribution models, and companies must plan strategically and adapt quickly to these changes.
While Kenyan authorities argue that the new rule will curb substance abuse, especially among young people, it will also affect nearly every aspect of alcohol production, distribution, and consumption in the East African country.
What This Means for Businesses
Kenya’s proposed alcohol policy, if passed into law, could shake up the market, posing serious business challenges for global alcohol giants like Diageo, Heineken, and AB InBev that have long positioned the country as a key growth market, according to Semafor.
It will also affect companies across the food, beverage, hospitality, and retail sectors, as these companies will face tough strategic decisions, according to The Kenyan Wall Street.
Opportunities for Businesses on the Continent
Rising demand for alcohol-free and low-alcohol alternatives In Africa, celebrations and social gatherings are an important part of community life, and products that provide the same social experience without alcohol would win a great share of the market. Companies that can innovate around taste, affordability, and cultural authenticity will capture this growing demand and consumer taste.
Health- and wellness-focused brands that align with government health goals
With increasing awareness of lifestyle-related diseases and government emphasis on healthier alcohol consumption, wellness-focused beverages are becoming popular. Brands that position themselves as partners in public health will grow market share and strengthen relationships with regulators.
Eco-friendly and standardised packaging solutions
Sustainability is becoming an important factor in consumer decision-making and government regulation across Africa. Companies that invest in eco-friendly, recyclable, and standardised packaging will meet new sustainability standards while differentiating themselves from competitors.
Lessons for Doing Business in Africa
Kenya’s reforms highlight a major compliance reality for business planning to expand into Africa: Africa is not a “plug-and-play” market. What works today, or in one country, may not work tomorrow in another. So long-term success requires:
- Understanding local regulations by staying ahead of policy shifts and their impact on businesses.
- Adaptability: Businesses must align their products, services, and strategies with changing consumer and sustainability policies on the continent.
- Partnerships Matter: Businesses must build trust with local distributors, regulators, and communities to adapt to overcome changes quickly.
How ETK Group Can Support You
At ETK Group, we’ve supported companies across Africa for decades, helping them overcome regulatory challenges, identify partners, and design resilient market strategies. Whether you’re looking to expand in Kenya or across Africa, we can help you adapt and succeed in an environment that’s constantly changing.
Reach out to ETK for support with adaptable, compliant, and future-ready African market strategies.