***Figures may differ from current rates.
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Despite the hullaballoo about licenses it’s a fact that there are many wines and spirits bars operating without alcoholic drinks licenses. For instance in Nairobi’s Umoja and Kayole estates there are countless bars without the alcoholic licenses. It’s the same case in Kiambu, parts of Nakuru and Embu.
Such bars survive by bribing police and other officials. In Nairobi for instance almost all wines and spirits retail shops pay the police a daily amount which ranges between Kshs.50 and Kshs.200 whether they have a license or not. Thus some entrepreneurs don’t see the need of getting the license.
Despite this it’s important to have a license. Its gives you peace of mind in case the police or administrative regime changes,( National Campaign Against Drug Abuse) NACADA or Kenya Revenue Authority (KRA) come calling , like they often do after an alcohol related tragedy of sorts.
Still if your budget is limited and your location, say Nairobi, allows you can start without an alcohol license and apply for it later.
The operatization of the county governments after the March 2013 elections meant there were now new centers of power and policy. Although licensing of Wines and Spirits business is still governed by the Alcoholic Drinks Act 2010, county governments have the power to boost or limit the business by the local laws they pass.
In an effort to stand out as epitomes of morality a number of counties have come up with laws to strictly control the alcohol business. Such laws often have to do with location and limiting the number of Bars, and Wines and Spirits that can be licensed.
For instance in Kericho the first draft of the alcoholic bill proposed to totally ban the sale of alcohol. In the end the assembly passed a law that banned the sale of second generation alcoholic drinks. These are the cheap high alcohol content spirits introduced in the market in the last 5 or so years. ( 2009)”
The Nyandarua alcoholic law states that in case credit is extended to a bar patron it’s valid for 24 hours after which the debtor can get away with it Muranga County passed a bill in May 2014 that would see the shutting down of all Wines and Spirits in the region.
In addition to the usual raft of measures the Nairobi alcoholic law has a clause that says an authorized person can enter and inspect a bar or wines and spirits to see if it meets requirements as stipulated in the law. The definition of authorized person is vague leaving it open to abuse.
There is something almost similar in Embu where the alcoholic drinks law says that police officers above the rank of inspector are allowed to search any alcoholic premises to ascertain conformity with the bill.
The Meru bill says alcoholic drinks sold in the county will have to go a series of tests and certification before being sold. Whether they have the capacity to conduct such tests is another question.
In reality the laws have not been very strictly implemented. One is because most counties lack the capacity to implement them and secondly because of corruption which makes enforcers turn the other way.
For instance in Nairobi despite legislation which says that bars should not be within residential areas there are many Wines and Spirits operating on the ground floors of some flats. George Aladwa , a former mayor and active politician, is the chairman of the Nairobi alcoholic board.
The laws have created more avenues for corruption and increased the number of officials who can possibly ‘eat’ from your business.