Africa: Manufacturers want liquor licensing role moved from counties
February 15, 2018
Alcohol manufacturers want the licensing mandate for manufacturing and importing liquor take away from the county governments to the national government.
Speaking during the launch of a campaign on illicit brews in Kerugoya, Kirinyaga County, the manufacturers insisted on tougher laws to seal loopholes allowing the re-emergence of illicit and substandard alcoholic products.
Alcoholic Beverages Association of Kenya (ABAK) chair Gordon Mutugi called for an amendment of the liquor laws to deal with the cartels that have infiltrated the business.
“There are so many loopholes that have allowed these illicit brews to enter the market. It is hard and unfair for legitimate manufacturers to compete with illegal businesses,” he said.
Among the changes that ADAK have proposed is in the licensing of manufacturers and importers where they want the licensing authority either moved from the county governments to the national or the laws harmonised across the country.
“Each county has its own liquor laws which are different. This means manufacturers are able to get licences to set up anywhere and this does not guarantee the standards set per county are all similar,” the ABAK chair noted.
The manufacturers have proposed the adoption of the Alcoholic Drinks Control Amendment Bill of 2016, which proposes that all importers and manufacturers get their licences from the national government with regulated standards.
The laws, according to ABAK, will also ensure fair play in the brewing sector as well as same level standards of manufacturing.
Similar standards
“Setting up a plant costs a lot of money but at the county level there is an open window to set up substandard premises.
“Giving the licensing mandate to the national government will ensure the standards are similar and regulated as one,” Mr Mutugi argued.
Meanwhile the Kenya Revenue Authority (KRA) has said it has measures in place to curb tax evasion amid reports of smuggling of ethanol and illicit brews into the country.
KRA reportedly loses millions of shillings through the smuggling of ethanol, which allows illegal traders to sell counterfeit liquor at lower prices.
The smuggling is said to be through the Kenya-Tanzania border where fake revenue stamps are used to dodge payments of excise duty fees.
KRA’s head of market surveillance Caxton Masudi they have enhanced border patrol to ensure alcoholic products and goods are not smuggled into the country.
“We have measures in place among them border patrol in partnership with the Interior ministry.
“Counterfeit stamps have been in use but they are easy to detect using the measures and that is why we are sensitising stakeholders on how to detect and report the counterfeits,” Mr Masudi said.