The Nairobi City County has reduced liquor licence fees for small bars and medium-sized establishments. Small bars with up to 30 seats will pay Sh25,000 annually, while medium-sized establishments with 31-100 seats will pay Sh35,000. The new rates represent a 75 per cent reduction for small bars and 65 per cent for medium establishments. The changes were introduced under the Nairobi City County Finance Act, 2026.
The revised annual charges are based on the seating capacity of the establishment. The small-bar category covers establishments selling alcohol for consumption on their premises. The reductions were highlighted by Governor Johnson Sakaja during a meeting with liquor and entertainment industry representatives at City Hall on November 11. The new classifications form part of the county's revised general retail alcoholic drinks licensing framework.
Establishments with more than 100 seats, hotels, restaurants, clubs and wines-and-spirits retailers may fall under different licence categories and fee schedules. The 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.
The lower fees do not give bars permission to operate outside their licensed hours. 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.
Governor Sakaja also 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.
Sakaja 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. For Nairobi's smaller bar owners, the reduced licence fees offer meaningful relief from one of the costs of operating a liquor business.
Key points
- Small bars with up to 30 seats will pay Sh25,000 annually, while medium-sized establishments with 31-100 seats will pay Sh35,000.
