Kenya: Transporters Warn Alcohol Bill Could Put Sh14.6bn Freight Revenue At Risk

Nairobi — Proposed restrictions on the transportation of alcoholic beverages could put up to Sh14.6 billion in annual freight revenue at risk, with transporters warning that the measures could disrupt supply chains, increase logistics costs and threaten thousands of jobs.

The Kenya Transporters Association (KTA) is urging Parliament to review provisions in the Alcoholic Drinks and Drugs Control Laws (Amendment) Bill, 2026, particularly a proposal to restrict the movement of alcoholic products to between 6am and 6pm.

The association argues that the proposed 12-hour transport window could interfere with long-distance freight operations, which depend on round-the-clock movement of goods through ports, customs facilities, warehouses, weighbridges and regional border crossings.

According to KTA's preliminary industry estimates, alcohol-related freight supports approximately 7,500 direct jobs, generates Sh43.9 billion in annual freight revenue and accounts for about 3,000 trucks operating locally and across the region.

The association estimates that the proposed restrictions could reduce transport capacity by between 14.3 per cent and 33.3 per cent, potentially putting between Sh6.3 billion and Sh14.6 billion in annual freight revenue at risk.

"We fully support efforts to eliminate illicit alcohol, but the solution must target criminal networks, not law-abiding transporters,"said KTA chairman Newton Wang'oo.

"Restricting the movement of legitimate cargo will disrupt supply chains, threaten jobs and increase the cost of doing business, while doing little to stop those who already operate outside the law."

The proposed changes come amid efforts to strengthen controls on the alcoholic beverages market, with illicit alcohol trade raising concerns over consumer safety, tax compliance and the effectiveness of enforcement.

However, transporters argue that restrictions on legitimate cargo movements could have wider implications for Kenya's logistics industry, which serves regional markets including Uganda, Rwanda, South Sudan and the Democratic Republic of Congo.

KTA warned that limiting freight movements could weaken the competitiveness of the Northern Corridor, a major trade route connecting the Port of Mombasa to landlocked economies in East and Central Africa.

Additional transport licensing requirements and potential liability for offences committed by third parties are also among the provisions the association wants Parliament to reconsider.

The industry lobby is proposing digital cargo traceability systems and intelligence-led enforcement as alternatives to blanket restrictions, arguing that these would allow authorities to track legitimate consignments while focusing enforcement resources on criminal networks.

It is also calling for transporters to be protected from liability where offences are committed by third parties despite reasonable due diligence, alongside consultations with industry stakeholders before the legislation is finalised.

The association has further urged Parliament to undertake a comprehensive economic impact assessment to establish the potential implications of the proposed measures on employment, investment and regional trade.

Read the original article on Capital FM.