Kenya Association of Manufacturers protests suspension of alcohol licenses 

KENYA – Kenyan alcohol manufacturers are up in arms against the recent directives introduced by the government, claiming that these measures would not only result in significant revenue losses but also increase the operational costs for their businesses. 

The Kenya Association of Manufacturers (KAM), representing 12 alcoholic beverage manufacturers, has voiced strong opposition to the government’s decision to suspend licenses and impose stringent regulations.  

One of the key grievances raised by KAM is the requirement for its members to install quality control laboratories, which they argue is financially burdensome. 

“While there is certainly a need to ensure safety in the alcohol that is locally produced, there is a need to be cognizant of the cost for compliance to manufacturers,” said KAM. 

Moreover, the directive mandating manufacturers to acquire gas chromatography machines for testing product quality has been labeled as punitive by the association.

KAM argues that the procurement of such equipment, coupled with the need to reconfigure existing production plants, poses significant financial hurdles. 

The government’s decision to increase the minimum alcohol packaging size from 250 milliliters to 750 milliliters has also drawn sharp criticism from KAM. The lobby argues that this move would render current machinery obsolete, leading to operational inefficiencies and losses. 

Additionally, KAM has expressed concerns regarding the potential for retailers to break bulk packaging due to affordability challenges, thereby risking the sale of adulterated or contaminated alcoholic drinks. 

These protests come after the suspension of licenses for second-generation alcohol manufacturers and distillers by the Ministry of Interior Affairs, alongside directives to review all existing licenses within three weeks. 

Interior Cabinet Secretary Kithure Kindiki defended the government’s actions, emphasizing the need for stringent regulations to curb harmful effects associated with alcohol consumption.  

However, KAM has urged the government to provide clarity on the definition of second-generation alcohol to avoid confusion and disruption of trade. 

Furthermore, KAM has called for a reconsideration of restrictions on operating hours and distribution of alcohol, citing potential adverse effects on trade and logistical challenges, particularly for small and medium-sized enterprises (SMEs) in the sector. 

The association has also opposed the mandatory adoption of digital stamps for alcohol products, arguing that this would impose additional financial burdens and logistical complexities on businesses. 

In light of these grievances, KAM has called for constructive dialogue with the government to address concerns and find mutually acceptable solutions that ensure both regulatory compliance and the sustainability of the alcohol manufacturing industry in Kenya. 

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