Bar owners pour heat on Sakaja's new license fees

Nairobi City County Governor Johnson Sakaja during the grand opening of Nairobi Festivals on Monday, October 30, 2023. [Samson Wire. Standard].

Bar owners in Nairobi now want the County government to clarify the new license charges that they will pay to operate businesses.

Their concerns come after Nairobi Governor Johnson Sakaja assented to the Nairobi County Finance Act 2023 which had various proposals including the new license charges for bars in the city.

In the new law, general retail alcoholic drinks, in premises situated within Nairobi County will pay annual fees of Sh100,000 up from Sh25,000.

Retail alcohol drinks also known as Off License will pay Sh50,000 from Sh12,000 which they used to pay for an annual license.

Some bar owners have described the new fees as an extensive increase, which does not specify the size of the business and other details of operation.

They argue that the County should specify exact charges that traders who run small bars in estates will also pay.

Bar, Hotels and Liquor Traders Association (Bhalita) officials said their input were not factored prior to the passing of the law.

The forum allowed business people in liquor trade to share concerns but they argue that their input was not taken into consideration.

“It is sad that public participation in this Country is not taken seriously, in our case no one suggested that the license fees be increased and we are highly frustrated,” Boniface Gachoka, Bhalita Secretary General said

He added, “our businesses are legal and the increase is already pushing out small scale liquor traders, we will challenge the decision in court.”

Gachoka added that the move could lead to the rise in consumption of illicit brews in the County since the prices of genuine brands are likely to go up in many joints.

The Pubs, Entertainment and Restaurant Association of Kenya has already written to the County seeking further clarification on the new law.

“We have written a letter to Liquor License Board so that they can clarify on this because it is wide and the act which has been assigned to is not clear,” the groups chair Michael Muthami explained.

Her added “There are those who operate bars alone in estates and big joints, that is why we are seeking for clarification, because some bars in estates struggle eve to make Sh100,000 profit,”

The group also wrote to the Hustlers and Business Opportunities docket at City Hall, a docket that deals with businesses in Nairobi.

Other bar owners are afraid that increase could create a room for corruption and likely to push out some traders from the business.