The directive by Deputy President Rigathi Gachagua to initiate a crackdown on illicit alcohol elicited a heated debate over the extent to which the government will go to curb the vice.
Recently while addressing county administrators in the Mt Kenya region, the DP ordered them to enforce a one-bar-per-town directive and strict operating hours - from 5:00 pm to 11:00 pm.
In addition, Gachagua directed county governments from the region not to renew bar licenses after they expire to prevent the youth from languishing in poverty over alcoholism.
"All county governments in Mount Kenya region must reduce and revoke licenses issued to bars and restaurants because they are the ones destroying the lives of our young generation...It is sad that bars in this region are more than shops," Gachagua stated on January 26 in Murang'a.
Although the actions by the government are focused on illicit alcohol, the approach is also perceived to punish the good players in the industry.
Experts opined that closing licensed bars would fuel the escalation of unlicensed bars and a shift towards deadly illicit liquors instead of quality beverages.
Further, they questioned the government directive to reopen at least 26 alcohol factories closed during former President Uhuru Kenyatta's era.
The move could likely create a recipe for chaos with the re-introduction of cheap but unsafe alcohol in the market and consequently hurting the quality brands.
Excise Stamp Controversy
The proposal by the National Treasury to hike the cost of excise stamps by up to four times was also highlighted.
According to the Kenya Association of Manufacturers chairman, Rajan Shah, the proposed increment up to levels beyond the current market costs of producing the stamps would negatively affect consumers and manufacturers.
This will be witnessed through an increase in the cost of production and the cost of finished products, which will be essentially passed on to the consumers.
Shah, in a statement seen by Kenyans.co.ke, argued that the move would cause a hindrance to the government's attempt to collect revenue over the increased presence of counterfeit products.
"We are afraid that such an increment to some of the most counterfeited items in Kenya will further encourage counterfeit and illicit trade. This will deny government revenue and put the lives of Kenyans at risk as substandard and highly dangerous goods infiltrate the market," he stated.
The proposal would further incentivize the black market for fake stamps if approved in Parliament.
The Public Investment Committee, through the leader of the minority in the National Assembly Opiyo Wandayi, claimed that attempts to collect excise revenue would be curtailed by the siphoning of Ksh 160 billion funds through systems set to deter counterfeiting.
Within the system, stamps and excisable goods along the supply chain can be tracked and authenticated.
Wandayi advocated for the contracts to be made public between the government and a private supplier. He also pointed out that the company was questioned for its integrity and accused of graft in over 13 countries. These include Egypt, Malawi, Ukraine and Malawi.
As it stands, the ease of doing business will be affected by the increase in costs and the crackdown on illicit brew, which consequently affects the quality players, according to stakeholders.
