CORONAVIRUS CONSEQUENCES

Bars shutdown will ruin economy, cause anarchy, industry warns

9,615 outlets have been affected by directive issued by 16 county governments

In Summary

• Association has asked CoG chairman Wycliffe Oparanya to consider the fact that businesses are still obligated to pay for licenses, loans, salariess, rent and leases

• Closure of bars disrupts value chains, deepening the negative impact of the pandemic to the economy.

The Silk Oak Bar.
The Silk Oak Bar.
Image: FILE

Alcoholic drinks manufacturers have asked county governments to reconsider the orders to shut down bars and nightclubs.

In a letter to the Council of Governors, the Alcohol Beverages Association of Kenya said the move would result in a bigger economic crisis than anticipated.

"We ask the county governments to be considerate as they implement measures to limit the spread of the coronavirus (COVID-19) in the country by upholding fair administrative action when implementing the directives,"chairman Gordon Mutugi said.

 
 

Mutugi said while the industry supported the limits on public gatherings, the decision by 16 county governments to ban operations of bars and entertainment spots was unwarranted.

He said about 9,615 outlets had been affected by the actions taken by 16 county governments.

Mombasa, Kisumu, Nakuru, Narok, Nyeri, Kilifi, Murang'a, Kajiado and Meru are among the counties that have ordered closure of all bars.

Nightclubs and bars within the NOREB bloc remain closed for 30 days effective March 13. The North Rift Economic Bloc comprises of Turkana, West Pokot, Baringo, Nandi, Elgeyo Marakwet, Uasin Gishu, Trans-Nzoia and Samburu counties.

But Mutugi said, "Events related to the pandemic are unfolding at an unprecedented speed, with heavy economic losses experienced across various sectors of the economy. The alcoholic beverage sector currently supports more than two million livelihoods, who directly depend on the alcoholic beverage value chain for their daily upkeep," he said.

"Closure of bars disrupts value chains, deepening the negative impact of the pandemic to the economy."

The association has asked the devolved governments through CoG chairman Wycliffe Oparanya to consider the fact that businesses must meet their obligations in terms of licensing, loan repayments, salaries, rent and leases, and the responsibilities of taking care of their families.

"Bars employ over 250,000 people who in most cases earn a daily wage. Closing them will render these people jobless, jeorpadise their support for over two million livelihoods and directly lead to social unrest," Mutugi said in a statement to newsrooms.

"Ultimately, this could potentially result to social anarchy including looting, muggings, violent robberies, as has already been witnessed in other parts of the world".

According to Mutugi, most bars are in the category of small and medium enterprises and are mostly owned and operated by women who employ thousands of youth.

He said closing them indiscriminately will push drinkers in the direction of illicit alcohol, which would compound the problem.

ABAK asked the Council of Governors to encourage good hygiene and social distancing at all public spaces, allow alcohol sales for responsible consumption at home and safeguard communities from the menace of illicit alcohol.

Mutugi said county governments should rather implement the advisory published by Makueni, Machakos and Vihiga counties, where licensed outlets have been allowed to strictly operate between 5pm and 11pm.

As a way to help in the sensitisation campaigns, Mutugi said they have asked members to promote hygiene through the donation of over 100,000 litres of hand sanitisers to 40,000 bars, 7,000 direct employees and 2.4 million vulnerable urban population living in slums.

He said the members will also drive public awareness by printing 100,000 pieces of A3 posters to sensitise the over 40,000 bars on the coronavirus pandemic and the measures they should take to minimise the spread of the virus and publicising the same through social media pages.

"We have asked our members to discourage overcrowding at the bars by offering bar owners the option of stocking portable alcoholic drink formats,"  he said.

Edited by Henry Makori

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