Bars and restaurants risk closure in new Nacada proposal

Owners of bars and restaurants risk closing down their businesses if a Bill aimed at curbing the number of outlets in any given area is passed into law.

The National Campaign Against Drug Abuse authority (Nacada) has drafted the National Alcohol Policy which seeks to control the proliferation of bars in estates in the hope that this will reduce access to alcohol.

“We are working on the best formula to determine how many bars and restaurants will be allowed per area,” said Aggrey Busena, the chief executive officer of Nacada.

The number of outlets will be determined by the classification of an area in terms of population size and zoning— whether residential or commercial.

The move to regulate alcohol outlets together with the reduced number of operating hours recently imposed on bars could put pressure on sales of beer, spirits and wines.

Mr Busena said 4,900 licences have been issued this year for outlets selling alcohol against the 30,000 registered outlets.

The Pubs Entertainment and Restaurants Association of Kenya (Perak) said the policy would enhance better industry standards and add value to the existing players.

“This will reduce the proliferation of similar services in a small area leading to more organised and more profitable investments,” said Sam Ikwaye, Perak chief executive .

Mr Busena said the proposed policy had helped developed countries like Britain and the US reduce excessive consumption of alcohol.

They were speaking during the launch of Alcohol Strategic Plan to reduce alcoholic substances abuse by the Kenya Alcohol Control and Policy Alliance (Kapa).

Kapa said higher prices and taxes for alcohol had proven effective in other markets in curbing abuse of drugs and alcohol, according to a research by the International Institute for Legislative Affairs.

The entertainment market has come under immense pressure with the latest blow coming from the ban of plastic packaging of alcohol products that saw players like Keroche lose millions of shillings in replacing their packaging system.

Mr Ikwaye said that Nacada would need to involve the stakeholders in the sector to avoid possible resistance and focus more on education on substance abuse rather than new legislations.

The formula will categorise areas as either residential, business and those close to learning facilities while putting in mind the population per area, a task that Mr Ikwaye said could prove difficult and controversial.

The new draft policy will also bar investors from certain areas perceived to be more profitable. Mr Busena said Nacada is working with the Ministry of Medical Services to establish rehabilitation centres in counties.