Ugandans drink twice as much illegal alcohol compared to legal drinks according to industry research. People consume 4.6 liters of pure illegal alcohol each year versus 2.3 liters of legal alcohol. Traditional drinks like Malwa and Kwen increased from 69 percent to 71 percent between 2020 and 2024. Euromonitor International studied the market and presented findings at Kampala Serena hotel to business leaders. The Uganda Alcohol Industry Association requested this research to understand illegal alcohol trade.
Illegal alcohol controls 65 percent of the entire market and costs government huge amounts of tax money. Legal drinks generate over one trillion shillings for Uganda Revenue Authority each year. The total alcohol market reached 15 trillion shillings during 2024 with illegal sales worth six trillion shillings. Unemployment and expensive living costs push people toward cheaper homemade alcohol that costs 81 percent less. Government loses about three trillion shillings annually from people avoiding taxes on alcohol sales.
Buganda region has the most illegal alcohol at 26 percent followed by West Nile and Lango at 19 percent each. Teso region shows 13 percent availability of illegal drinks among local consumers. Smugglers bring contraband alcohol from Kenya and Democratic Republic of Congo through border crossings. Lake Victoria serves as another route for illegal alcohol coming from Kisumu port in Kenya. Revenue officials created special teams to find and stop illegal alcohol trade across Uganda.
Illegal alcohol controls 65 percent of the entire market and costs government huge amounts of tax money. Legal drinks generate over one trillion shillings for Uganda Revenue Authority each year. The total alcohol market reached 15 trillion shillings during 2024 with illegal sales worth six trillion shillings. Unemployment and expensive living costs push people toward cheaper homemade alcohol that costs 81 percent less. Government loses about three trillion shillings annually from people avoiding taxes on alcohol sales.
Buganda region has the most illegal alcohol at 26 percent followed by West Nile and Lango at 19 percent each. Teso region shows 13 percent availability of illegal drinks among local consumers. Smugglers bring contraband alcohol from Kenya and Democratic Republic of Congo through border crossings. Lake Victoria serves as another route for illegal alcohol coming from Kisumu port in Kenya. Revenue officials created special teams to find and stop illegal alcohol trade across Uganda.
