Bar owners have faulted the proposal to amend the Alcoholic Drinks Control Act 2010 saying it amounts to the government interfering in a free market economy.
Political leaders have been pushing for amendments on the Act and resultant regulations to include providing a formula for determining the maximum number of alcoholic outlets to be licensed in a given area based on population density.
However, The National Bar Owners Association which brings together more than 54,000 bar owners, alcohol and liquor traders from across Kenya, has objected to the move.
It argues that changing the current regulations amounts to the government interfering with the operations of legible investors who should be allowed to set up their businesses and then compete in an open market for customers.
“We are of the opinion that limiting the number of alcoholic outlets amounts to the government interfering in a free market economy. Such measures are likely to have negative ripple effects on investment and job creation, particularly in the current challenging economic times,” said the association’s secretary general Boniface Gachoka.
Gachoka added that a unilateral approach in handling the situation would expose the country to a proliferation of illegal trade thereby denying the government its fair share of revenue in form of taxes.
They now want the proposed amendments to be subjected to stakeholder engagements across the country, incorporate best practices and aim to foster an enabling business environment.
To address the issue, the lobby says county governments should have uniform liquor rules to provide predictability.
“On the proposal to undertake a census exercise that covers manufacturers and distributors of alcoholic drinks within counties, the association’s view is that it is essential that this is done with a well-established structure and rules to ensure that only legitimate businesses thrive,” added the association's chairman Simon Njoroge.
Bahlita also backed the proposed closure of all unlicensed outlets and have the vendors prosecuted since unlicensed outlets are a major contributor to alcohol abuse as they trade in unregulated illicit products while at the same time denying the government the much needed revenue.
