• Nairobi County Executive for Finance Charles Kerich gazetted waivers on certain charges for the current financial year 2023-2024.
• The general alcohol retail category, bars will now pay Sh25,000 for licences, down from Sh100,000, a reduction of 75 per cent.
Image: FILE
Reprieve for bar owners in Nairobi as County Government revises liquor retailer licensing fees.
The move comes barely a month after the Bar Hotels and Liquor Traders Association of Kenya (BALITA) raised concerns over increased operation costs at a time when the country was still grappling with a high cost of living.
As a result, Nairobi County Executive for Finance Charles Kerich gazetted waivers on certain charges for the current financial year 2023-2024.
"In exercise of the powers conferred by section 5 (2) (a) of the Nairobi City County Tax Waivers Administration Act, 2013, the county executive Committee Member for Finance and Economic Planning, in concurrence with the Governor has given waivers on the charges for the financial year 2023-2024," the gazette notice dated February 22, 2024, read.
Under the Nairobi County Finance Act 2023, Sakaja raised the annual fees for general retail alcoholic drinks premises within Nairobi from Sh25,000 to Sh100,000.
He also raised the annual license fees for retail alcohol drinks known as Off License from Sh12,000 to Sh50,000.
However, with the new waiver in place, the general alcohol retail category, bars will now pay Sh25,000 for licences, down from Sh100,000, a reduction of 75 per cent.
Medium bar licences have been reduced to Sh35,000 from the current Sh100,000, a 35 per cent waiver.
In the general alcohol retail category for bars and restaurants, the county has issued a 50 per cent waiver, meaning they will no longer pay Sh100,000 but Sh50,00.
It's also a big win for small bars and restaurants with up to 30 seats since they have received a 100 per cent waiver from their current Sh30,000 fee.
The medium bars and restaurants operating within the capital but with a sitting capacity of up to 100 people will be paying Sh75,000, whereby they will save Sh 25,000 from the initially proposed Sh100,000.
Last year, the county announced that it had amended Section 25 of the Nairobi City County Alcoholic Drinks Control and Licensing 14 to review the charges for general retail alcoholic drinks upward.
However, Bar owners and liquor traders opposed the new rates arguing that the new law does not specify the exact charges small bars operated in estates would pay.
They argued that the vague nature of the law would create room for corruption to thrive and likely push them out of business.
BAHLITA officials led by Secretary General Boniface Gachoka also said that they were never consulted by the county government.
"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 frustrated," Gachoka said on November 4, 2023.
While forming the committee to review the charges, Sakaja said his administration was ready to listen to stakeholders who contribute to the economy.
"The traders expressed support for our efforts in restoring order, dignity, hope, and opportunities for all categories of business people in the Central Business District,” he said.