County loses over Sh80 million in uncollected liquor revenue

Laikipia County has lost more than Sh80 million in revenue from liquor businesses.

About Sh84 million has been lost as bar owners traded without paying fees for the past three years over a standoff in the gazettement of the Alcoholic Drinks Control Amendment Bill.

It wasn't until last Friday that the amendment, which was passed by the county assembly last December and signed into law in April, was gazetted.

“For a year, bar owners have been operating without paying for licences. No one can impose penalties because there is conspiracy in enforcing the amended Act,” said Governor Ndiritu Muriithi.

In 2014 and 2015, the county only collected Sh28 million from the businesses, according to county revenue Director Nelson Ochungo.

County assembly

The Alcoholic Drinks Control Amendment Bill, 2016 which was passed by the county assembly in December 2016 to regulate the liquor business was not published hence delaying the gazettement.

The then chief officer had issued a letter to the law enforcement agencies and bar owners indicating that the government was not licensing until the amendments were published.

Mr Ochungo said the bar owners had gone to court challenging the law for lack of public participation as they felt fees were too punitive and did not cater for bar and restaurant permits.

In the settlement, the county government committed to amend the law, while the bar owners committed to pay for realistic licence fees.

“The matter was settled out of court but some issues have not be settled to enable us collect the revenue,” said Ochungo.

Muriithi, the county boss, said that there was an argument that the government printer delayed in publishing the amendment as a result of unpaid debts of Sh116, 000 that was to be paid by the county.