Sakaja receives report on review of liquor license fees

Nairobi Governor Johnson Sakaja on Friday received the report on the review of liquor license fees in the county.

Sakaja formed a joint committee on October 21, 2023, to review the charges after provisions in his Finance Act 2023, increased liquor license fees by a huge margin.

The governor mandated the team to come up with a win-win solution to the issues raised by bar owners who threatened to go to court to oppose the new charges.

"Received the technical working group report on liquor licensing fees and charges. We are open to the review of these charges which aim to restore sanity in the sector while supporting entrepreneurship and business," Sakaja said in a statement on X.

The joint committee comprised a team from the county government and representatives of bar owners and liquor traders under the Bar Hotels and Liquor Trade Association of Kenya (BAHLITA), Pubs, Entertainment and Restaurants Association of Kenya (PERAK), and Medium Liquor Traders Association (MELTA).

Committee members from the government side comprised the County Commissioner, the County Executive Committee Member in charge of Trade, the County Attorney and the Chief Officer in charge of the inspectorate unit.

Under the Nairobi County Finance Act 2023, Sakaja raised the annual fees for general retail alcoholic drinks premises within Nairobi County from Sh25,000 to Sh100,000.

He also raised the annual license fees for retail alcohol drinks also known as Off License from Sh12,000 to Sh50,000.

It followed amendments to the Nairobi City County Alcoholic Drinks Control and Licensing Act of 2014. 

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 really 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 said.