If you patronised Quiver Lounge and Grill on Thika Road, Nairobi, before the Covid-19 pandemic, a lot has changed.
The seating area has been expanded to ensure social distancing requirements by the government. In Hurlingham, Roadhouse Grill has been operating at 50 per cent capacity since the reopening of bars a week ago.
"The President’s address was timely, coming at the end of the month, which is when we get many customers. We had a very busy first day on Tuesday when the drinking hours were extended. People had missed interacting with each other, which probably explains why they came in large numbers," Mr Robert King’ori said.
Had dead stock
However, the economy’s partial reopening did not bring joy to the entire industry as some 21,000 bars, hotels and restaurants remain shut. The Bars, Hotels and Liquor Traders Association says many members lack resources to revive their businesses.
The association has offices and representatives in counties and sub-counties who collected the figures. "Most of our members have been badly hit by the pandemic. We have 54,000 members across the country, yet 21,000 of these bars and hotels are not going to reopen because they just don’t have the money," said the association’s Secretary-General Boniface Gachoka.
Most of the bars had dead stock, after the alcohol they were holding when bars were closed expired. This affected up to 250,000 people.
The reopening comes with yet another challenge, since Kenya Revenue Authority (KRA) has already slapped alcoholic products with excise duty, beginning this month.
The authority increased taxes for alcoholic products, including Sh12.50 for spirits and Sh6 for beer.
Jeopardise pace of recovery
"We appreciate the fact that there are other factors that are affecting consumption in this financial year and that adjustment has also been considered," said Mr Caxton Masudi, KRA’s domestic taxes deputy commissioner for policy and tax advisory.Traders have lamented that the additional duty will jeopardise the pace of recovery, which had seen sales decline by up to 39 per cent.Their fate now lies in the hands of alcohol manufacturers, who are in talks to decide whether they will pass on the cost to consumers.East African Breweries Ltd (EABL) told the Nation it had delayed passing on the cost as it was engaged in discussions to decide on a way forward."Depending on the outcome of the discussions we are having, we will decide whether we will incur the tax or adjust the cost of […]
