Reprieve for bar owners as Sakaja revises liquor retailer licensing fees
Closed liquor stores along Mfangano Lane in Nairobi in this picture taken on February 28, 2024.
What you need to know:
- In the general alcohol retail category, bars will pay Sh25,000 for licences, down from Sh100,000, a reduction of 75 per cent.
- Governor Sakaja recently received a report from a task force that was formed to probe the challenges bar owners were facing in the market.
The Nairobi City County government has addressed the complaints of alcohol traders over the high operational costs introduced in the Finance Bill, 2023.
This follows the publication of the new fees by the County Executive Committee Member (CECM) for Finance and Economic Planning, Mr Charles Kerich, through a gazette notice.
The move comes barely a month after the Bar Hotels and Liquor Traders Association of Kenya Bar Owners Association raised concerns over increased operation costs at a time when the country was still grappling with a high cost of living.
In the general alcohol retail category, bars will pay Sh25,000 for licences, down from Sh100,000, a reduction of 75 per cent.
Medium bar licences have been reduced from the current Sh100,000 to Sh35,000, a 35 per cent waiver for the current fiscal year 2023/2024.
Small bars and restaurants
In the general alcohol retail category for bars and restaurants, the county has announced a 50 per cent waiver, meaning they will pay Sh50,000 instead of Sh100,000,
It is a win for small bars and restaurants with up to 30 seats since they have received a 100 per cent waiver from their current Sh30,000 fee.
The medium bars and restaurants operating in Nairobi with a sitting capacity of up to 100 people will be paying Sh75,000, which is Sh25,000 less than what had earlier been proposed.
“In exercise of the powers conferred by section 5 (2) (a) of the Nairobi City County Waivers Administration Act, 2013, the County Executive Committee Member for Finance and Economic Planning, in concurrence with the Governor has given waivers on the charges and fees for the financial year 2023-2024,” Mr Kerich said.
Last year, the county announced that it had amended Section 25 of the Nairobi City County Alcoholic Drinks Control and Licensing Act, 2014 to review the charges for general retail alcoholic drinks upward.
Demolition of liquor stores
At the time, the county government increased the general retail alcoholic drinks license (off license) in respect of premises situated within the county from the initial Sh12,000 to Sh50,000 per year.
The announcement comes after Governor Johnson Sakaja received a report from a task force that was formed to probe the challenges that bar owners were facing in the market after the review of licensing fees.
The task force brought together representatives of the Bar Hotels and Liquor Traders Association of Kenya, the county finance department, and other stakeholders.
The move also follows the recent demolition of liquor stores and wines and spirits outlets in bus stages and terminals within Nairobi City County.
According to Sakaja, the move was aimed at addressing cases of matatu drivers purchasing and consuming alcohol from the liquor shops around the stages, hence endangering the lives of passengers.
More than 150 shops have now been closed in the ongoing operation by a team from the county inspectorate department and the National Police Service.
