Nairobi County demands Ksh.924 million from EABL in liquor licensing dispute

Chief Officer for Business and Hustlers Opportunities Lydia Mathia said an internal audit established the alleged arrears, which the county is seeking to recover 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 Ksh.924 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.

The county has questioned what it describes as a disparity between EABL’s historical licensing contribution of approximately KSh1 million and fees of up to KSh9 million paid by some major beverage manufacturers in neighbouring counties.

Mathia said the difference raised concerns about fairness in the licensing system, arguing that smaller businesses should not face strict enforcement of licensing requirements while the obligations of major manufacturers remain unresolved.

She also dismissed arguments that manufacturers’ payments of excise duty and corporate income tax to the Kenya Revenue Authority (KRA) should exempt them from county liquor licensing fees.

Mathia said liquor licensing is a devolved function under Part 2, Paragraph 4(c) of the Fourth Schedule to the Constitution, giving county governments the mandate to regulate the sector.

“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.

The county maintained that collecting the disputed revenue was necessary to support public services, including healthcare, water provision and road infrastructure.

“This is public money that belongs directly to Nairobians who stand in line for healthcare, water and proper roads,” Mathia said, adding that the county would pursue all amounts established to be lawfully due.

The dispute has 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 would comply with the orders while pursuing the matter through the courts.

The dispute comes amid concerns from industry representatives that additional county charges could amount to double taxation, given that manufacturers already pay taxes to the national government.

Nairobi County, however, maintains that national taxes and county licensing fees serve different purposes and that businesses must meet their obligations under applicable laws.

The county said it was also pursuing reforms to simplify business regulation, including the Unified Business Permit and LiquorPay, a digital licensing system intended to improve efficiency and transparency.