Nairobi County Chief Officer for Business and Hustlers Opportunities Lydia Mathia addressing a press conference on October 23, 2026/HANDOUT

Nairobi City County says an internal audit identified approximately Sh924 million in outstanding liquor licensing arrears it attributes to East African Breweries Limited (EABL), a claim that has brought renewed attention to differences in licensing fees paid by major manufacturers and smaller businesses.

Chief Officer for Business and Hustlers Opportunities Lydia Mathia said the county's claim followed an internal audit that raised concerns about what officials described as long-standing revenue gaps and disparities in the liquor licensing regime.

Speaking during a press briefing on Friday, Mathia said the county assessed the alleged arrears 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.

The Sh924 million figure represents the county's assessment of the alleged arrears. The dispute remains unresolved, and the county's claim should not be taken as an independent determination of the amount legally payable.

Mathia said the county's concerns included what she described as a 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.

According to Mathia, the difference raises questions about whether the existing licensing arrangements adequately reflect the scale of manufacturers' operations and their market presence in the capital.

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

Mathia also rejected arguments that manufacturers' payment of excise duty and corporate income tax to the Kenya Revenue Authority (KRA) should exempt them from, or reduce, their county licensing obligations.

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

Mathia 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.

"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," Mathia said.

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

Mathia said 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 any 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 liquor licensing system intended to improve efficiency, transparency and predictability in business regulation.

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

The county has said it will pursue the alleged arrears it attributes to EABL, but the amount claimed and the applicable licensing obligations remain matters to be addressed through the relevant legal and administrative processes.