Nairobi County Demands Sh924 Million from EABL in Liquor Licensing Dispute

NAIROBI, Kenya Oct 23 – Nairobi City County is seeking to recover approximately Sh924 million in outstanding liquor licensing arrears attributed to East African Breweries Limited (EABL), citing disparities in licensing contributions between major manufacturers and small-scale traders.

Chief Officer for Business and Hustlers Opportunities Lydia Mathia said the claim followed an internal audit that raised concerns over long-standing revenue gaps and inequalities in the liquor licensing regime.

Speaking during a press briefing, Mathia said the outstanding amount was assessed under the Nairobi City County Alcoholic Drinks Control and Licensing Act, 2014, and the Finance Act, 2026.

“After rigorous internal audit scrutiny, EABL owes Nairobi County Sh924 million in outstanding liquor licensing arrears. We have held meetings with the company and extended an olive branch to address the matter, but our efforts to negotiate a resolution have not yielded the desired outcome,” Mathia said.

At the centre of the dispute is what Mathia described as a significant disparity between EABL’s historical licensing contribution in Nairobi and the fees paid by major beverage manufacturers operating in neighbouring counties.

She said some major manufacturers in neighbouring counties pay up to Sh9 million in local licensing fees, while EABL’s historical licensing contribution to Nairobi County has stood at approximately Sh1 million.

Mathia argued that the difference raised questions about whether the existing licensing arrangements adequately reflected the scale of manufacturers’ operations and their market presence in the capital.

She described the disparity as unfair to smaller businesses, which are required to comply with county licensing requirements and pay prescribed fees.

The Chief Officer also dismissed arguments that manufacturers’ payments of excise duty and corporate income tax to the Kenya Revenue Authority (KRA) should exempt them from, or diminish, their county licensing obligations.

Industry representatives have argued that additional county charges could amount to double taxation. However, Mathia maintained that national taxation and county liquor licensing serve different purposes, with the latter falling within the devolved functions of county governments.

“Under the Fourth Schedule of the Constitution of Kenya (2010), Part 2, Paragraph 4(c), the mandate for liquor licensing is explicitly devolved to county governments, and this must be adhered to,” she said.

Mathia said the county’s enforcement efforts were also informed by the need to protect public revenue and ensure businesses contributed fairly to the delivery of essential services.

“This is public money that belongs directly to Nairobians who stand in line for healthcare, water and proper roads. The current enforcement approach by the Business and Hustlers Opportunities Sector is a direct response to a rigorous audit process, and we will pursue the recovery of all money lawfully due to the county,” she said.

She described the situation as a “decades-long corporate free ride”, arguing that neighbourhood bars, restaurants and wines and spirits outlets should not face stringent enforcement while the licensing obligations of major manufacturers remain unresolved.

The dispute has also drawn in the Alcoholic Beverage Association of Kenya (ABAK), whose representatives met county officials on October 14, 2026, to discuss the licensing framework.

According to Mathia, ABAK subsequently obtained court orders restraining the implementation of the contested measures. The county said it respected the authority of the courts and would comply with all orders in force as it defends its position through the judicial process.

“The County will pursue only what is legally due while ensuring that licensing assessments are fair, transparent and consistent with the law,” Mathia said.

Despite the dispute, the county said it remained committed to creating a business-friendly environment through reforms such as the Unified Business Permit (UBP) and LiquorPay, a streamlined liquor licensing system designed to improve efficiency, transparency and predictability in business regulation.

Mathia acknowledged the contribution of manufacturers to investment, employment creation and economic growth but maintained that these benefits must be accompanied by compliance with applicable laws.

“Our position is clear: every business must meet its lawful licensing obligations. Small traders should not bear the burden of compliance while the obligations of major manufacturers remain unresolved,” she said.

The county maintains that recovering outstanding licensing revenue is necessary to protect public resources and ensure businesses contribute fairly to service delivery.

The dispute now centres on the amount legally due, the basis for assessing manufacturers’ licensing fees and whether the existing framework provides equitable treatment across the industry.

While Nairobi County has vowed to pursue the arrears it attributes to EABL, the contested enforcement measures remain subject to court orders and the ongoing judicial process.