Country Report Kenya January 2011

Economic policy: Tighter restrictions on alcohol sales are pending

In a further example of government interference in the economy, Kenya is poised to impose stiff new regulations governing the sale and consumption of alcoholic beverages that could also be highly damaging for the vital hospitality and tourism sectors. The alcoholic drinks and control act-passed by parliament in November and now awaiting gazettement-limits sales to a 2pm-11pm window on weekends and a 5pm-11pm window on weekdays, and says that licensed premises must not be within 300 metres of a school, among other restrictions. Restaurants, bars and hotels warn of major job losses and a decline in social activity, but the government has so far ignored their lobbying. Establishments have a nine-month grace period to comply but some outlets are already applying the new laws and consumers are uncertain. One good aspect of the new bill is the drive to both legalise and control "traditional" liquors, such as changaa (which often causes illness and death) but, apart from this, the new measures are draconian. The controls are partly an attempt to appease Christian churches, who called for a "no" vote on the new constitution before suffering a bruising defeat, but the government's new-found moral zeal risks damaging the economy.

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