Nairobi cuts liquor licence fees for small bars: See the new rates and rules

Small bar owners in Nairobi are set to pay substantially less for their annual liquor licences following changes introduced under the Nairobi City County Finance Act, 2026.

The new rates reduce the annual fee for small bars from Sh100,000 to Sh25,000, while medium-sized establishments will pay Sh35,000, down from Sh100,000.

The reductions were highlighted by Governor Johnson Sakaja during a meeting with liquor and entertainment industry representatives at City Hall on November 11, alongside new directions aimed at addressing complaints about county inspectors.

The new liquor licence fees

The revised annual charges are based on the seating capacity of the establishment.

Licence category

• Small bar - 1 - 30 customers to pay Sh25,000 down from Sh100,000.

• Medium bar with 31 - 100 customers to pay Sh35,000 down from Sh100,000.

For small bars, the reduction amounts to 75 per cent.

Medium establishments receive a 65 per cent reduction.

The new classifications form part of the county's revised general retail alcoholic drinks licensing framework.

The small-bar category covers establishments selling alcohol for consumption on their premises, rather than off-licence retailers selling drinks for consumption elsewhere.

The revised charges concern liquor licences.

They do not automatically remove other business costs, including applicable Unified Business Permit (UBP), public health and safety requirements.

Establishments with more than 100 seats, hotels, restaurants, clubs and wines-and-spirits retailers may fall under different licence categories and fee schedules.

How to apply or renew a licence

Nairobi County operates an online LiquorPay platform through which business owners can apply for new liquor licences, renew existing ones, transfer licences and update business details.

The portal also provides a service for updating the Unified Business Permit.

Under the Nairobi City County Alcoholic Drinks Control and Licensing Act, 2014, liquor licence applications are handled through the relevant sub-county licensing committee.

The committee considers the suitability of the premises, public health and occupational safety requirements, available equipment and staffing.

Members of the public may also lodge objections to an application before it is determined.

Applicants should ensure that their premises meet the relevant requirements rather than assume that payment of the reduced fee guarantees approval.

Operating hours still apply

The lower fees do not give bars permission to operate outside their licensed hours.

Under the county's Alcoholic Drinks Control and Licensing Act, general retail alcoholic drink licences allow sales between 5pm and 11pm from Monday to Friday.

On weekends and public holidays, the permitted hours are 2pm to 11pm.

Other licence categories, including restaurants, hotels and clubs, have separate conditions.

The legal prohibition on selling or supplying alcohol to anyone below 18 years also remains in force.

Licensed businesses must display their licences and comply with the other conditions attached to their operations.

Sakaja orders changes to county inspections

The November 11 meeting also addressed longstanding complaints from bar owners over repeated inspections, intimidation and night raids.

Sakaja directed the county to publish a list of authorised inspection officers across all 17 sub-counties.

Only officers appearing on the official list and carrying valid identification will be permitted to conduct inspections.

He also ordered an end to disruptive night raids targeting DJs and customers over noise complaints.

Instead, officers were instructed to document complaints involving noise pollution or public nuisance and take appropriate action against the establishment's owner through established procedures.

The directive is an administrative instruction to county enforcement teams.

It does not abolish noise-control laws, remove public safety requirements or extend the legal operating hours for bars.

Entertainment taxes remain under discussion

Sakaja also announced a 14-day consultation period with liquor and entertainment industry representatives over entertainment and event taxes introduced under the 2026 Finance Act.

The discussions are intended to address concerns raised by operators and explore a way forward.

They do not, by themselves, suspend or cancel the taxes.

For Nairobi's smaller bar owners, the reduced licence fees offer meaningful relief from one of the costs of operating a liquor business.

However, businesses must still obtain the correct licence, meet health and safety requirements, observe operating hours and comply with the county's other applicable permits and regulations.