Inside Politics

Lobby: Liquor sale ban to cost 57,000 jobs

Monday, August 31st, 2020 00:00 |
Beer. Photo/File

INDUSTRY: The closure of bars and the ban on sale of alcohol in restaurants to contain the spread of Covid-19 will result in massive loss of jobs and cost the alcoholic beverage industry and the economy billions in losses.

Alcoholic Beverages Association of Kenya (Abak) says the ban will lead to supply chain losses of Sh9.1 billion and loss of 57,000 jobs between July and September this year.

The association said in a report that reduced demand for both raw materials and finished goods will also result in massive loss of revenue for county governments, national government and other players in the value chain.

“Cess and Liquor license payment to county government currently stands at Sh11 million and Sh2 billion annually.

The reduction would total Sh2.9 million in cess and Sh500 million in license fee,” the report reads in part.

National government, on the other hand, will lose Sh5.88 billion in excise and value added tax.

This excludes what the government earns in from issuing EGM codes and in pay as you earn tax.

It says in the three months, demand for barley has reduced by three million kilogrammes while that of sorghum has reduced by 4.8 million kilogrammes translating to a loss of Sh419 million by the end of September.

“Job losses across the value chain, farmers, factory and MSMEs, approximate 57,417, Sh2.72 billion by the end of September,” it reads in part.

Demand for grain and finished goods transport is estimated to reduce by a total Sh24 million and Sh736 million respectively.               

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