PUBS, ENTERTAINMENT AND RESTAURANTS ASSOCIATION OF KENYA ENGAGEMENT

Following the recent gazetted Nairobi Finance Act 2023, the association noted that the alcoholic charges had tremendously increased from the proposed figures.

On Tuesday 8th November 2023, PERAK in conjunction with Small and Medium Liqour Traders Association (MELTA) held a meeting with the Chief Officer Business and Hustler Opportunity Ms. Zipporah Mwangi and Nairobi City County Liquor Director Ms. Rhoda Otieno to discuss and seek clarity on:

1. Business schedules and operation hours in respect to the approved charges

It’s important to note that the new charges take effects immediately upon renewal of the liquor license and the operation hours remains the same where:

  1. General license for a bar is 100,000
  2. Bar and restaurant ksh 130,000
  3. Club license

(see attached schedule)

The concern from both associations were:

  • The approved charges are high and the businesses are struggling to keep afloat
  • Majority of the businesses will close doors leading to job losses and loss of revenue to the County
  • The Nairobi City County should give business owners amnesty in terms of enforcement as this opens up room to extortion and harassment
  • The charges will push/see an increase in consumption and sale of illicit brews
  • The need to collaborate and work together in terms of sensitization and protection of the business owners
  • Review the new charges

It was agreed and resolved that:

  • The county representative will forward the concerns of the industry to the CEC Business and Hustler Opportunity, who will brief H.E. Where PERAK national chairman will be notified on the way forward after a day
  • The associations to formally put the concerns in writing
  • Schedule for a second meeting once a formal letter has been received

Both parties noted the need for consultation and dialogue before seeking other avenues

Present:

(PERAK): Mike Muthami (National Chairman), Julius Thuo, Alex Mwonga, Eunice Ogea, Denis Odongi (Chairman Umoja Bar Owners), Robert Odhiambo (Secretary Embakasi East Bar Owners)

(MELTA): Frank Mbogo (National Chairman), Alex Matindi, Mboya Brian

             THIRD SCHEDULE                                        (r. 15)                  

LICENSE FEES

Type of License                                                                         Annual Fees

  1. General retail alcoholic drink license (Bar) –                        
                                                                                                                              
    in respect of premises situated within a                                
    City or a municipality …………………                               100,000                       
  2. General retail alcoholic drink license                                   
    (off license) –                                                                                                         
    in respect of premises situated within
    City or municipality ………………….                                 50,000                         
  3. Brewer’s alcoholic drink license
    For each alcoholic drink or product manufactured:
    (a) one million liters and above per annum                           1,000,000

    (b) between five hundred thousand (500,000)
    and nine hundred ninety nine thousand, nine hundred
    and ninety nine (999,999) liters per annum ………..             500,000

    (c) above twelve thousand (12,000) but below four
    hundred and ninety nine thousand, nine hundred and
    ninety nine liters (499,999) per annum …………….             250,000

    (d) twelve thousand liters (12,000) and below per annum      50,000

  4. Wholesale alcoholic drink license for each premises              50,000                         

  5. Import alcoholic drink license (wholesale):
    (a) one million liters and above                                            1,000,000

    (b) between five hundred thousand (500,000)
    and nine hundred ninety nine thousand, nine hundred
    and ninety nine (999,999) liters  ……..………..                    500,000

    (c) below five hundred thousand (500,000) liters                   250,000

  6. (1) Bottler’s alcoholic drink license                                      250,000                       

    (2) Depot license, in addition to subparagraph (1)
    per depot …………………………………………….             50,000                         

  7. (1) Distributor alcoholic drink license …………….               50,000                         

    (2) Depot license, in addition to subparagraph (1)
    per depot …………………………………………….              20,000                         
  8. Hotel alcoholic drink license
    (a) in respect of premises situated within a City
    or a municipality ……………………………………             50,000                         

    (b) where the license holds a general retail alcoholic
    drink license in respect of the same premises ……..              5,000

  9. Restaurant alcoholic drink license –
    in respect of premises situate within City
    or municipality …………………………………….               30,000                         

  10. (1) Club alcoholic drink license (member’s club) –

in respect of premises situate within  City
or  municipality ……………………………………               100,000
     
(2) Club alcoholic drink license (proprietary club or
night club or discotheque) –
in respect of premises situate within  City
or  municipality ……………………………………               100,000

  1. Supermarket and franchised retail stores alcoholic
    drink license –
    in respect of supermarkets or franchised retail
    stores for each premises situate within  City
    or  municipality ……………………………………               80,000 

  2. Theatre alcoholic drink license                                             15,000                         

  3. Traveler’s alcoholic drink license
    (a) where the license does not hold a general retail
    alcoholic drink license in respect of the same premises          30,000

    (b) where the license holds a general retail alcoholic
    drink license in respect of the same premises                        15,000

  4. Railway restaurant car alcoholic drink license per car            5,000

  5. Steamship alcoholic drink license, per steamship                  30,000

  6. Temporary or occasional alcoholic drink license per day       1,000

  7. For transferring an alcoholic drink license                            1,000

  8. For removing an alcoholic drink license                               500

  9. For the issue of an assurance under the Act                           1,000

For the issue of a duplicate license                                             300

Statement from Small and Medium Liquor Traders Association against increased license fees

The Small and Medium Liquor Traders Association (MELTA), representing a significant portion of local liquor
establishments and small businesses, wishes to express our profound concern and strong objection to the recent
proposal for a substantial increase in liquor license fees within our community.
While we recognize the importance of generating revenue for public services and regulatory efforts, the proposed
fee hikes have raised significant alarm among our members and stakeholders. These increases have the potential
to impose an undue burden on our small businesses and employees which are already grappling with numerous
economic challenges, especially in the wake of the financial and economic constraints we are currently undergoing
as a country.
Our concerns are as follows:
Disproportionate Impact on Small Businesses: Many of our members are locally-owned, family-operated
businesses. The proposed fee increases disproportionately affect these small establishments, potentially
jeopardizing their viability and contributing to job losses within our community.
Economic Fragility: In an era of economic uncertainty, it is essential to support local businesses, not hinder their
growth. Higher license fees can hinder investment, expansion, and the creation of new jobs within our
community.
Impact on Employment: Higher license fees are likely to lead to job cuts and reduced working hours for our
employees, which would contribute to the already concerning issue of unemployment in our community.
Hindrance to Local Economic Growth: Our establishments are not just places to buy and consume alcohol; they
are integral parts of our local communities. The financial strain caused by increased fees could lead to business
closures, which in turn would have a detrimental effect on local economies.
Deterrence of Responsible Operators: Such steep fee increases may discourage responsible business operators
from maintaining their licenses, potentially leaving room for less scrupulous operators who do not prioritize
responsible alcohol sales and the safety of patrons.
Unaffordability: The proposed fee hikes may lead to increased prices for consumers, which could subsequently
affect local patrons and their access to affordable leisure activities.
Lack of Consultation: We believe that an increase in license fees should be the result of a comprehensive and
collaborative consultation process that takes into account the perspectives of all stakeholders. The absence of such
a process is concerning.
We acknowledge that the responsible regulation of liquor establishments is essential to ensure public safety and
promote responsible alcohol consumption. However, it is our belief that any fee increases should be reasonable,
transparent, and fair to all businesses, considering their size and economic contribution to the community.
We urge the relevant authorities to reconsider the proposed increases in liquor license fees, and we welcome the
opportunity to engage in constructive dialogue to find a more balanced and equitable solution that supports both
local businesses and the community.
The Small and Medium Liquor Traders Association (MELTA) remains committed to upholding the highest
standards of social responsibility and business ethics within our industry. We hope that our concerns will be taken
into account, and we look forward to a productive discussion with relevant County officials on this matter failure
to which we will be left with no option challenging the decision in court.
Sincerely,
Francis Mbogo
Chairman
MELTA