Bar owners worried about business future

 

Muthamia, (center) Board member PERAK during a press briefing. The body has been working to develop protocols to enhance bars and restaurants resume operations safely. Looking on is Frank Mbogo (right) PERAK Chair, Nairobi.

NAIROBI, KENYA: Kenya’s pubs and restaurant association has expressed disappointment over the government’s directive to extend the closure of bars for another 30 days to contain the spread of the coronavirus.

In a statement, the association said it expected President Uhuru to lift the temporary ban in support of livelihoods and seal losses the industry incurs due to restrictions on operations.

It has been a rough six months for bars and restaurants which constitute many of the Small and Medium Enterprises that have suspended work.

In new orders announced last week, President Uhuru Kenyatta extended the closure of bars and night clubs for another 30 days.

The president however directed bar owners in consultation with the Ministry of Health to develop self-regulating mechanisms as part of their civic responsibility to their clientele, in order to allow their resumption.

“We had hoped that the Government would allow the resumption of business after the first 30 days and were understandably disappointed, but we are glad that there is some light at the end of the tunnel and we have been set a challenge that we are confident we will meet,” said Frank Mbogo Perak Chair.

“We, therefore, appreciate the President’s directive that we work with other stakeholders to come up with protocols to ensure a self-regulation mechanism that will work. We are confident that the President’s directive sets the stage for bars and restaurants to reopen,” he added.

The association expressed worry that the industry beaten by the Covid-19 restrictions may not recover even after the re-opening owing to new tax measures.

At a press conference on Monday, Perak took issue with the National Treasury on how it continues to treat the alcohol beverage industry as the default option whenever there is a need to increase revenue collection, and there are still proposals to increase the tax collected from alcoholic beverages.

“The latest proposal has come from the Kenya Revenue Authority, which seeks to increase Excise Duty regardless of the crippling circumstances in which we have been operating.”

“PERAK is therefore worried that even with the reopening, the industry will not recover given the increase in prices that is likely to be the result of an increase in Excise Duty as proposed by the KRA.”

On July 27, the president extended the curfew for another 30 days but relaxed the hours to between 9pm and 4am from 7pm to 5am. He cited increased Covid-19 infections which he said have risen since he eased the pandemic’s containment measures on July 6, 2020.

The president had addressed the nation from Statehouse Nairobi, after meeting all governors.

Uhuru then further directed there would be no sale of alcohol effective for 30 days in eateries and bars across the country.

President Uhuru had also directed that all bars would be closed until further notice. The Head of State then directed Inspector General Hillary Mutyambai to withdraw permanently operating licenses of all bars that would breach of the regulations.