Close Menu
  • Demos
  • Buy Now
  • Breaking news

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

KARAMOJA PRESIDENTIAL INDUSTRIAL HUB TRANSFORMS LIVES

August 11, 2026

MUSEVENI ORDERS CRACKDOWN ON HEALTH-SECTOR ABSENTEEISM

August 11, 2026

STANBIC BANK UNVEILS CHINESE YUAN PAYMENT

August 11, 2026
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram Vimeo
Elix News
Subscribe Login
  • Home
  • Politics

    MUSEVENI ORDERS CRACKDOWN ON HEALTH-SECTOR ABSENTEEISM

    August 11, 2026

    PS LOCAL GOVERNMENT ISSUES DIRECTIVE ON EMPLOYMENT

    August 10, 2026

    SFC HONOURS 67 RETIREES FOR DEDICATED SERVICE

    August 9, 2026

    PERSIS NAMUGANZA URGES ARCHITECTS  TO TAKE LEAD IN URBAN DEVELOPMENT AGENDA

    August 6, 2026

    VICE PRESIDENT COMMENDS BALAAM FOR HIS ANTI CORRUPTION DRIVE

    August 6, 2026
  • Business

    STANBIC BANK UNVEILS CHINESE YUAN PAYMENT

    August 11, 2026

    FROM AWARD TO AMBITION:DFCU BANK BACKED FARMER SETS SIGHT ON 20,000 BIRDS AWEEK

    August 10, 2026

    “CUT LENDING RATE FOR MANUFACTURERS,”MINISTER URGES

    August 10, 2026

    PRESIDENT MUSEVENI,SAMIA SUHULU SIGN MOU TO DEEPEN COOPERATION  

    August 6, 2026

    URSB DELETES 90,000 BUSINESSES

    August 5, 2026
  • Education

    KAPCHORWA RDC CALLS ON TEACHERS TO EMBRACE NEW LOWER SECONDARY CURRICULUM

    August 10, 2026

    UBOS,NATIONAL BUILDING REVIEW BOARD TO CONDUCT UGANDA’S FIRST EVER BUILDING BASELINE SURVEY

    August 8, 2026

    CONSTRUCTION WORKS FOR UBOS STATE OF ART OFFICE IN ENTEBBE KICKS OFF

    August 7, 2026

    UBOS COMMISSIONS 80 DATA COLLECTORS FOR THE 9TH UGANDA NATIONAL HOUSE HOLD SURVEY

    August 3, 2026

    KOICA UNVEILS NEW ICT HUB IN KASESE TO SKILL PWDS

    August 3, 2026
  • Environmental

    GOVERNMENT LAUNCHES CLIMATE RESILIENCE PROJECT

    August 10, 2026

    NWSC BOSS URGES CATHOLICS TO PRIORITISE HOUSE HOLD INCOME GENERATION

    August 9, 2026

    LANGO LEADERS EMBRACE PRESIDENT MUSEVENI’S FOUR-ACRE MODEL

    August 6, 2026

    ” SOLVE UGANDA’S HOUSING NEEDS,”PERSIS NAMUGANZA URGES

    August 4, 2026

    MINISTRY OF ENERGY GRILLED OVER 17.3BILLION ELECTRIFICATION FUND

    August 2, 2026
  • Regional

    EASTERN AFRICA STATES URGED TO STRENGTHEN REGIONAL SECURITY MECHANISMS

    August 10, 2026

    PRESIDENTS MUSEVENI AND SAMIA SULUHU LAUNCH NEW PHASE OF UGANDA-TANZANIA ENERGY PARTNERSHIP

    August 6, 2026

    EQUITY GROUP,AFRICANENDA TO EXPAND DIGITAL PAYMENTS IN AFRICA

    July 7, 2026

    KENYAN OPPOSITION LEADER TO TAKE UGANDA TO EAC COURT

    June 29, 2026

    EBOLA CASES RISE TO 676 IN DR CONGO

    June 13, 2026
  • Entertainment

    UGANDA INTERNATIONAL FASHION WEEK RETURNS

    August 2, 2026

    MUSICIAN SINACH WINS COURT BATTLE OVER WAY MAKER HIT OWNERSHIP

    August 1, 2026

    KASUKU NAMED UGANDA’S LEADING INFLUENCER  

    July 27, 2026

    GHETTO KIDS, SHAKIRA AND BURNA BOY LIGHT UP WORLD CUP FINALS

    July 21, 2026

    MOUNTAIN DEW INJECTS CASH IN NCBA AUTO SHOW SPONSORSHIP

    July 16, 2026
  • Health

    NWSC KANUNGU PROJECT TO SERVE 2MILLION PEOPLE

    August 9, 2026

    AFRICA CDC CALLS ON UNITED STATES TO LIFT TRAVEL RESTRICTIONS ON UGANDA

    July 31, 2026

    PRESIDENT MUSEVENI REAFFIRMS UGANDA’S SUPPORT TO DRC EBOLA RESPONSE

    July 29, 2026

    “SUPPORT RAISE FUNDS FOR DISABILITY SURGICAL SERVICES,”CORSU APPEALS

    July 24, 2026

    US CLEARS DEI BIOPHARMA TO DEVELOP CANCER IMMUNOTHERAPY

    July 22, 2026
Elix News
  • Home
  • Politics
  • Business
  • Education
  • Environmental
  • Regional
  • Entertainment
  • Health
Home»Uncategorized»71% OF ALCOHOL IN UGANDA MARKET IS ILLICIT
Uncategorized

71% OF ALCOHOL IN UGANDA MARKET IS ILLICIT

felix@elixnews.co.ugBy felix@elixnews.co.ugMay 27, 2025Updated:March 24, 2026No Comments5 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp VKontakte Email
Share
Facebook Twitter LinkedIn Pinterest Email

The consumption of traditional, unregulated alcoholic beverages in Uganda, commonly known as artisanal illicit alcohol, increased to 71% of the total alcohol market in 2024, up from 69% in 2020. This is according to a new custom research report released by the Alcohol Industry Association of Uganda (UAIA).

The report, titled “Understanding illicit alcohol market in Uganda,” was compiled by Euromonitor International in the first quarter of this year.

According to the report Ugandans on average consume 4.6 liters of pure illicit alcohol annually, compared to 2.3 liters of pure legal alcohol. This means illicit consumption is double that of legal alcohol. For context, 4.6 liters of pure alcohol is equivalent to about four 500ml cans of beer, four glasses of wine, or seven 30ml shots of vodka per week.

“For about 10 years up to date, illicit alcohol has been accounting for 65% of the market to date; and the 35% of legal and regulated alcohol are paying over UGX 1Trillion in taxes,” Emmanuel Njuki, UAIA Vice Chairperson, said.

Njuki advised government to tackle the illicit alcohol challenge  to have favorable business opportunity for both existing and new industry players, leading to increased tax revenue, improved public health and better returns on investment for the industry.

According to the report the total alcohol market in 2024 amounted to shs15 trillion  (approximately $4 billion), with 40% of this value attributed to illicit alcoholic beverages, totaling 6 trillion (approximately $1.6 billion) in illicit sales.

Factors such as unemployment and the rising cost of living have driven demand for cheaper, home-made artisanal alcohol like wines and spirits, which are up to 81% cheaper than legal alternatives. However, the report also noted a slight decrease in counterfeiting and smuggling/contraband alcohol from 2020-2024, shrinking from 27% to 25% and 4% to 3%, respectively.

EC VOTERS DISPLAY ADVERT

In terms of volume, the report indicates that the total Ugandan alcohol market reached 1.7 million hectoliters in 2024, with 67.3% being illicit products, up from 64.5% in 2020.

Benjamin Rideout, a consultant who presented the report, explained that the illicit alcohol market expanded by 157,453 hectoliters between 2020 and 2024. The fiscal loss related to illicit alcohol sales grew at a Compound Annual Growth Rate of 16.2%, driven by increasing volumes and higher excise duties on various alcohol categories.

“Illicit alcohol is driven by affordability, accessibility, and low levels of enforcement,” Rideout stated, noting that with over 20% of Uganda’s population living below the national poverty line, affordability is paramount. He added that while illicit producers closely monitor legal market prices to maximize profits, especially with counterfeits, illicit beverages are priced “up to 81% lower than the equivalent legal beverages.”

He revealed that illicit alcohol was most widely available in Buganda (26%), West Nile (19%), Lango (19%) and Teso (13%), with 15% availability along the Eastern Border in Busoga.

 The fiscal loss from counterfeit and illicit brands was valued at 3 trillion  (approximately $800 million) in 2024. However, only 10% of consumers associate illicit beverages with tax evasion or revenue loss for the government.

The UAIA recommends widespread public sensitization on the impact of illicit substances, not only on health but also on their broader societal implications, hoping for a behavioral shift in consumption patterns.

Isaac Arinaitwe, Principal Economist at the Finance Ministry, commended the UAIA study. He described the findings, particularly on fiscal loss, as “alarming” and pledged to work with the Euromonitor team to understand the report’s figures.

“Illicit alcohol even has a public health challenge to the consumers; it undermines fair competition to legitimate players,” Arinaitwe said.

 He suggested that while artisanal alcohol might be difficult to tackle, addressing counterfeits would require a holistic approach involving the Ministry of Local Government.

Abel Kagumire, Commissioner Executive Operations at the Uganda Revenue Authority (URA), confirmed the tax body has formed a working group to gather field intelligence on illicit trade in alcohol and tobacco.

Hon. Amos Kankunda, chairperson of Parliament’s finance committee, affirmed that increased budget allocation to URA and other relevant government agencies should lead to intensified enforcement. He added that the government is losing lives due to illicit alcohol consumption.

“In West Nile, we still have the challenge of illicit,” Kagumire said, noting that while Eastern Uganda has largely been managed, issues persist with ethanol claimed to be from Kenya but originating from Swaziland. “Identification of illicit products is still a challenge, unless the officers are trained in the field on how to identify them.”

Kagumire expressed surprise at the report’s findings, stating, “This report has unearthed areas where leakages have been, we have been collecting UGX 1 Trillion from the industry and we clap hands, but using this, we can even collect UGX 4 Trillion. As URA, we are surprised by the findings and we have taken them in good faith.”

Key highlights from the report indicate that illicit alcohol sales represented 67% of the total alcohol market by volume and 40% by value in 2024, with illicit volume sales growing by 16% since 2020. Artisanal illicit alcohol, produced by rural households and small-scale informal distilleries, predominates in volume, while value sales mainly derive from counterfeit spirits. Fiscal losses, driven mostly by artisanal alcohol, grew by 80% since 2020, with counterfeiting being the second largest contributor due to diverted domestic ethanol production. Consumers are aware of illicit products’ illegality and health risks, but affordability remains the primary driver for consumption. Artisanal alcohol also holds significant cultural importance in traditional celebrations.

Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
Previous Article SAFEBODA CELEBRATES 10 YEARS OF COMMUNITY IMPACT
Next Article MINISTRY OF WORKS TO HOLD INAUGURAL ROAD SAFETY MARATHON
felix@elixnews.co.ug

Related Posts

MASTERCARD FOUNDATION LAUNCHES $500MILLION AFRICA PRIZE

July 21, 2026

“NO NAMBOLE,NO AFCON,”PRIME MINISTER DEMANDS ANSWERS ON DELAYED NAMBOLE RENOVATION

July 16, 2026

KCCA ELECTS MAYOR SSERUNJOJI TO LEAD ENVIRONMENT COMMITTEE

June 26, 2026

GENERAL MUHOOZI MK FUND:AYOUTH SIGNAL TO SOCIO ECONOMIC TRANSFORMATION

April 7, 2026
Leave A Reply Cancel Reply

Our Picks

PRIME MINISTER NABBANJA, WORKS FRED BYAMUKAMA NOMINATED FOR KAKUMIRO

October 22, 2025

RUPARELIA GROUP REWARDS KASESE WITH HOSPITAL BEDS

October 10, 2025

MUSEVENI WARNS  BUSOGA ON DISUNITY

September 26, 2025

WOMEN ECONOMIC EMPOWERMENT FOR GREEN TRANSFORMATION PROJECT LAUNCHED

August 14, 2025
  • Facebook
  • Twitter
  • Pinterest
  • Instagram
  • YouTube
  • Vimeo
Don't Miss
Featured

KARAMOJA PRESIDENTIAL INDUSTRIAL HUB TRANSFORMS LIVES

By felix@elixnews.co.ugAugust 11, 20260

Three months ago, 27-year-old Denis Opio from Lwamuge Village in Lwamuge Sub-county, Abim District, had little…

MUSEVENI ORDERS CRACKDOWN ON HEALTH-SECTOR ABSENTEEISM

August 11, 2026

STANBIC BANK UNVEILS CHINESE YUAN PAYMENT

August 11, 2026

FROM AWARD TO AMBITION:DFCU BANK BACKED FARMER SETS SIGHT ON 20,000 BIRDS AWEEK

August 10, 2026
About Us
About Us

Elix News is your source for trusted news, anytime. Browse topics from Entertainment to Politics to Sports, we cover it all!

Our Picks

KARAMOJA PRESIDENTIAL INDUSTRIAL HUB TRANSFORMS LIVES

August 11, 2026

MUSEVENI ORDERS CRACKDOWN ON HEALTH-SECTOR ABSENTEEISM

August 11, 2026

STANBIC BANK UNVEILS CHINESE YUAN PAYMENT

August 11, 2026
Facebook X (Twitter) Instagram Pinterest
  • Home
  • Breaking news
  • Featured
  • Business
  • Entertainment
© 2026 Elix News. Designed by Goph Technologies.

Type above and press Enter to search. Press Esc to cancel.

Ad Blocker Enabled!
Ad Blocker Enabled!
Our website is made possible by displaying online advertisements to our visitors. Please support us by disabling your Ad Blocker.
I have disabled my ad blocker

Sign In or Register

Welcome Back!

Login to your account below.

Google Icon
GitHub Icon
LinkedIn Icon
X Icon
Lost password?