KENYA – Nyandarua High Court in Kenya has ruled government-led campaign against the sale and consumption of liquor in the county as illegal.
During a court hearing on Wednesday, Judge Charles Kariuki welcomed stakeholders in the industry to file lawsuits seeking settlement of damages caused as a result of earlier closure of their businesses and impounding of assets during the implementation of the Interior Cabinet Secretary’s ‘impugned directive’.
Additionally, the Court gave directions requiring the Ministry of Interior and National Administration, along with the County Commissioner of Nyandarua, to cover the costs of petitions filed by the bar owners.
In the petition, Nyandarua Bar Owners sought conservatory orders against the ministerial directive mandating the compulsory closure of bars near residential areas and schools, arguing implementation of the directive was done without due process.
While seeking an amicable solution for the dispute, the traders termed the directive a violation of their rights, citing several failed attempts to find a solution.
The directive, issued under Section 4(2) of the Preservation of Public Security Act, directed the County Commissioner to shut down all bars operating near residential houses and schools which were not approved to operate as such.
The traders argued that the directive was ill-driven and would result to the loss of over jobs and collapse of businesses in the region.
In response, the County Commissioner justified the initiative stating: “The CS, Ministry of Interior, and National Government Administration issued directives on measures to curb illicit brews. The bars were closed in conformity with the same. The petitioners have not attached any licenses to prove that they were operating the business legally.”
The administrator argued that fresh vetting was necessary to ensure compliance and public safety.
However, the court ruled in favor of the petitioners, noting that they were legally in business with country permits for 2023.
The judgment emphasized that the petitioners were entitled to fair administrative action and adequate notice before the closure of their bars.
‘60% of alcohol sold in Kenya is counterfeit’ – ABAK
The ruling comes when Eric Githua, Chairman of the Alcoholic Beverages Association of Kenya (ABAK), alleges that 60 percent of all alcohol sold in Kenyan stores is illicit.
Speaking in a local TV show, Githua stated that the majority of the alcoholic beverages in the country were questionable and that the proposed tax law could exacerbate the problem.
In the new proposed law, the spirits excise tax is set to shoot by 79 per cent. The current rate is Kes356 (US$2.69) per litre of spirit and if passed this could reach Kes640 (US$4.83).
“The tax proposal is quite high and the government should consider staggering its implementation over a couple of years,” Githua said.
The association’s chair also added that the high cost of legitimate alcohol was directly linked to the proliferation of illicit brews that continue to claim lives in the country.
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