The Kenya Association of Manufacturers (KAM) says that contraband goods account for 52 percent of the market share.
Head of Membership Development Tobias Alando, who gave this report, noted the need to address the issue of porous borders through which the goods get into the country.
Alando said the most affected goods are spirits and
fast-moving items such as
cooking oil and sugar.
"Majority were unfit for human consumption," he told the press at the weekend.
“The influx of contraband is worrying but we are fully behind raids by Kenya Revenue Authority and Kenya Bureau of Standards to address this problem."
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Alando said raids at Mombasa port and warehouses in various towns will continue.
He talked to journalists while leading a team from KAM in a tour of Keroche Breweries in Naivasha, on a mission to understand their challenges.
Keroche Breweries MD Sam Shollei said the contraband issue is serious and they eat into a huge chunk of the market share.
Shollei also noted high electricity costs and called for the review of tariffs.
“We pay Kenya Power Sh60 million every year ... we consider the charges too high and one of the major obstacles for manufacturers."
Daniel Tare, Kenya Power's Network Maintenance General Manager, said the tariffs were being reviewed.
Tare said the organisation is ready to engage customers and solve their problems.
“We have introduced a new harmonised power tariff that is being discussed by stakeholders as part of addressing the high cost of electricity in the country,” he said and noted that cases of blackouts had
reduced drastically.
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