Pubs, Entertainment and Restaurant Association of Kenya (PERAK) has said its members will sack 13,000 of its permanent staff if the ban on nightclubs in residential areas is enforced
PERAK further estimates that 10,000 or more of the temporary employees will not be required due to the reduced operations within nightclubs.
The association says that there are at least 12,000 nightclubs in different parts of Nairobi that employ more than 60,000 directly, and contribute Sh21.6 billion in revenue to Kenya Revenue Authority and various licensing bodies.
PERAK National chairman Michael Muthami, said a further 73,600 indirect jobs that serve the industry and estimated at about Sh1.6 billion per month in indirect employment income will be lost in Nairobi.
The bars and restaurant lobby says that the government will lose close to Sh22 billion annually if the crackdown continues.
Muthami said the operators respect and appreciates the rights of all Kenyans to live in areas free of noise pollution and will work with all stakeholders to ensure compliance with the law.
He said that the non-compliant establishments should be accorded more time to soundproof the businesses.
"This commitment is demonstrated by the fact that bar owners have been in talks with the government and the resident associations since the complaint were raised against the night clubs near residential areas,” said Muthami.
The government extended the same treatment to businesses that had been shut down by Kenya Revenue Authority (KRA) due to tax offences. This will safeguard livelihood and government revenue.
Nairobi County government figures place the number of licensed bars at 12,000 directly employing over 60,000 people who jointly earn Sh21.6billion in employment income, of these 400 outlets are licensed as nightclubs.
“The 400-night clubs in Nairobi employ 50- 80 full time employees (total average of 26,000 people) and 20-30 temporary employees (total average of 10,000 people),” said Muthami
The association said the closure of the nightspots would have a ripple effect on the economy, affecting other sectors including transport; supply chains, spa and money transfer service providers.
Muthami said the ban comes at a time when consumers have constrained disposable income compounded by high alcohol taxes, which have fuelled high levels of illicit alcohol trade.
According to PERAK the County Government of Nairobi would lose Sh52 million in licenses revenue yearly.
City Hall cancelled licences for nightclubs operating in residential areas following numerous complaints from residents.
In a public notice issued Friday, acting county secretary Jairus Musumba said no nightclub license would be issued or renewed for premises operating in residential areas.
