Tourism players demand review of Alcoholic Act

Tourism players demand review of Alcoholic Act

By Allan Olingo

The hotel industry is calling for wider engagement in the formulation and implementation of industry regulations to mitigate against imminent business losses resulting from restrictive legislation.

Reacting to the recent rejection by Parliament of proposed amendments to the Alcoholic Drinks Control Act 2010, the Kenya Association of Hotel Keepers and Caterers (KAHC) and the Pubs Entertainment and Restaurant Association of Kenya (PERAK) say the act is punitive and will have a negative effect on the hotel business, which is already suffering numerous challenges.

Speaking during a consultative forum in Nairobi, the Kenya Association of Hotelkeepers and Caterers Association chief executive officer Mike Macharia emphasised on the need for inclusive sectoral engagement on issues related to legislation to create a favourable business environment.

 “While we reiterate that the spirit of the law is commendable and admirable, some of the proposals in these laws will obviously harm and not gain the industry, which is a key source of revenue for the government through various taxes, levies and fees,” he said.

“These laws, if implemented fully will force a number of players to either close shop or move their investments to more business friendly environments, resulting in pay cuts, job losses and huge revenue losses to the government,” Macharia said.

 “For instance, there is no evidence to demonstrate that the sale of alcohol two days before elections or by-elections affects the election process in any way,” said Macharia, adding that the proposed amendments will only serve to criminalise legal businesses to the gain of illegitimate operators.

As part of the way forward, KAHC are proposing industry self-regulation by establishing an industry code of conduct and ethics to aid the implementation of legislation while safeguarding the profitability of businesses.

Last week, Parliament rejected Mt Elgon Member of Parliament Fred Kapondi’s bid to have the law amended to increase the drinking period by six hours .