The Pubs, Entertainment and Restaurants Association of Kenya (PERAK) has said that the government will lose around Sh22billion annually if the crackdown on nightclubs in residential areas proceed.
According to Perak at least 12,000 nightclubs in different parts of the country employ more than 60,000 directly, and contribute Sh21.6 billion in revenue to the State.
The association said the closure of the nightspots would have a ripple effect on the economy, affecting other sectors including transport, beauty and spa and money transfer service providers.
PERAK National chairman Michael Muthami, said a further 73,600 indirect jobs that serve the industry and estimated at about Sh1.6 billion per month in indirect employment income will be lost in Nairobi.
Muthami said the operators respect and appreciate the rights of all Kenyans to live in areas free of noise pollution and will work with all stakeholders to ensure compliance with the law.
He said that the non-compliant establishments should be accorded more time to soundproof the businesses.
“This commitment is demonstrated by the fact that bar owners have been in talks with the government and the resident associations since the complaint were raised against the night clubs near residential areas,” said Muthami.
Muthami said the ban comes at a time when consumers have constrained disposable income compounded by high alcohol taxes, which have fuelled high levels of illicit alcohol trade.
City Hall cancelled licences for nightclubs operating in residential areas following numerous complaints of noise from residents.