The Bar Hotels Liquor Traders Association of Kenya (BAHLITA) has criticized the decision by the government to order a shutdown of bars in Central Kenya region to tame alcoholism.
While welcoming efforts to curb alcohol abuse, the bar owners have blamed the menace on the government’s laxity to deal with brewers and sellers of illicit alcoholic beverages.
BAHLITA Chairman Simon Njoroge challenged the government to heighten surveillance and enforcement mechanisms across Mt Kenya and the country to tame the alcoholism menace.
“It is our considered view that the problem of illicit and counterfeit alcoholic drinks has largely been caused by the availability of cheap alcohol manufactured by dealers of fake products,” said Njoroge.
He added, “This was further compounded by the laxity of security officers to heighten surveillance and enforcement mechanisms during the electioneering and transition period, especially during the 2022 General Elections.”
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He noted that unscrupulous traders had been taking advantage of the lapse by the relevant government agencies tasked with enforcement to conduct the thriving illegal business.
They termed the plan by the government to reduce licensed bars and regulate operating hours in various town across Central Kenya as a threat to Kenyan entrepreneurial spirit.
“We note with great concern that part of the government’s plan against the sale of illicit alcohol is the reduction of licensed bars as well as the regulation of operating hours across various towns.
“We find this to be an affront to the efforts of Kenyan entrepreneurs who have invested their hard-earned money in running legitimate businesses that have in turn supported the livelihoods of thousands of young Kenyans and their families.”
Njoroge said more than 17,000 jobs would be lost in the industry and other businesses that rely on the bar ecosystem like car washes, kinyozi and salons closed if the government goes ahead with the proposal.
He noted that most illicit alcohol is being sold in unlicensed establishments and blamed those sold in licensed entities on government allowing the manufacturing of such alcohol.
“It is therefore improper for the government to punish even those entrepreneurs who are legitimately doing their business and paying the requisite taxes and levies,” he stated.
The bar owners have appealed to County Governments in Mt Kenya which has vowed to implement the order by Deputy President Rigathi Gachagua to reconsider their decision.
They are now appealing to the President William Ruto administration to engage all industry stakeholders when implementing such policies to avert killing legitimately businesses.
The lobby further noted that the continued tax hike on alcoholic drinks by the government has compounded the increase in production, sale and consumption of illicit brews in Kenya.
“A case in point is the proposed increase in the price of excise stamps through the Excise Duty (Excisable Goods Management System) (Amendment) Regulations, 2023. If the amendments are approved as is, this will lead to an increase in the prices of beer and spirits with the common mwananchi bearing the brunt. It does not help matters that the rise comes just a few months after the implementation of the 6.3 percent adjustment for inflation that came into effect last October followed by a 10% increase in excise implemented in July 2022 following the 2022/2023 annual national budget,” he noted.
BAHLITA members are urging to the government to stop the implementation of the hike in excise stamps prices and assess the impact of the recent tax increases on their businesses.
“It is unfortunate that consumption of safe alcohol has reduced by almost 50 per cent and we have had to reduce the number of employees in the sector comprising waiters, chefs, DJs, car wash attendants, cleaners, shoeshines, watchmen, kinyozi and salon operators among others; basically, Kenyans falling within the bracket of ‘Hustlers’.
“The recent pronouncements by President William Ruto and his Deputy Rigathi Gachagua point to a situation where the ‘Hustler Government’ is seen to be out of touch with the immediate needs of Kenyans -real Huslers- including the high cost of living and inflation.”
