Nairobi County is pursuing Sh924 million in disputed liquor licensing arrears attributed to EABL.
County officials cite an internal audit as they pursue the claim, while court orders restrain contested licensing measures.
Nairobi County is seeking approximately Sh924 million in alleged arrears in the EABL licensing dispute. Officials say an internal audit identified unpaid liquor licensing fees attributed to East African Breweries Limited.
Chief Officer for Business and Hustlers Opportunities Lydia Mathia announced the claim during a press briefing. She said meetings with the company had not produced the resolution the county sought.
Mathia said the assessment relied on the Nairobi City County Alcoholic Drinks Control and Licensing Act, 2014. She also cited the Finance Act, 2026, as a basis for the demand.
EABL licensing dispute centres on fee differences
At the centre of the county’s argument is a comparison with manufacturers operating in neighbouring counties. Mathia said some pay up to Sh9 million in local licensing fees. By comparison, she put EABL’s historical contribution to Nairobi at approximately Sh1 million.
She argued that the difference raised questions about whether fees reflected manufacturers’ scale and market presence. Mathia also said smaller businesses faced strict compliance requirements while major manufacturers’ obligations remained unresolved.
The county linked its recovery efforts to funding services, including healthcare, water and roads. However, the amount legally due and the basis for assessing manufacturers’ fees remain contested.
County rejects double-taxation argument
Industry representatives have argued that additional county charges could amount to double taxation. Mathia, however, said national taxes and county liquor licensing served different purposes.
She maintained that excise duty and corporate income tax payments to the Kenya Revenue Authority did not remove county obligations. In support of that position, she cited the Constitution’s Fourth Schedule, which assigns liquor licensing to county governments.
Court orders limit contested measures
Meanwhile, the Alcoholic Beverage Association of Kenya has joined discussions over the licensing framework. Its representatives met county officials on October 14, 2026.
Mathia said the association subsequently obtained court orders restraining implementation of the contested measures. The county said it would comply with those orders while defending its position through the courts.
Despite the dispute, officials said they remained committed to improving business regulation through the Unified Business Permit and LiquorPay. The latter aims to make liquor licensing more efficient, transparent and predictable.
Mathia also acknowledged manufacturers’ contribution to investment, jobs and economic growth. However, she maintained that those benefits must go alongside compliance with lawful licensing requirements.
