Government will lose Sh22b in nightclubs' crackdown, association says
Business
By
Mate Tongola
| Nov 29, 2022
DJ Exclusive in action at 1824 Club, Lang'ata Road, Nairobi. [Elvis Ogina/Standard]
The Pubs, Entertainment and Restaurants Association of Kenya (PERAK) says that the government will lose close to Sh22 billion annually if the crackdown on nightclubs in residential areas continues.
The Nairobi County Government has announced a crackdown on nightclubs operating in the residential areas in efforts to contain noise pollution.
PERAK says at least 12,000 nightclubs in different parts of Kenya employ more than 60,000 directly, and contribute Sh21.6 billion in revenue to the State.
The association said the closure of the nightspots would have a ripple effect on the economy, affecting other sectors including transport, beauty and spa and money transfer service providers.
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"Four hundred (400) outlets, or 3.3 per cent of the bars in Nairobi, are licensed as nightclubs. It is estimated that each of the 400 nightclubs employs between 50 to 80 full-time employees and 20 to 30 temporary employees. In total, the bars employ about 36,000 people," said PERAK.
According to the association, a full-time employee earns a monthly salary of Sh30,000, while a short-term employee earns Sh10,000 monthly.
PERAK says this would result in a loss of Sh780 million monthly for full-time employees and Sh100 million monthly for part-time employees.
The association said the County Government of Nairobi would lose Sh52 million in licenses revenue yearly.
PERAK wants the Nairobi County Government to reconsider its stand on nightclubs.
Forty-three (43) nightclubs in the city have been put under the county government's radar for noise pollution.
Last week, Nairobi Governor Johnson Sakaja cancelled the operating licenses of all nightclubs located in residential areas in efforts to contain noise pollution.
Former media personality Betty Kyallo is facing a challenging moment as Karen residents call for the closure of her restaurant, the Summer House, over alleged noise pollution.
The residents have raised complaints with the County Government of Nairobi.
"We demand that the Nairobi City County Government immediately closes the facility and withdraw any approvals or licenses issued to the Summer House," said the Karen residents' association.
The Standard reached Betty Kyallo for comment, but our phone calls to her went unanswered.