Governor Johnson Sakaja’s administration introduced a Sh100,000 licence for online sales of alcoholic drinks under the Nairobi City County Finance Act, 2026, prompting scrutiny from retailers about rising compliance costs.

The Retail Trade Association of Kenya (RETRAK) confirmed it had raised the issue with the county Liquor Licensing Board after the Finance Act’s provisions were published, seeking clarification on the licence’s unit of application.

RETRAK warned that the board’s interpretation – that the licence could apply separately to each online sales channel, retailer website or third‑party platform – might multiply fees for businesses operating on multiple digital fronts.

Traders argue that a single physical outlet already paying the standard county liquor licence could face substantially higher costs if separate licences are required for WhatsApp orders, proprietary e‑shops and listings on services such as Glovo.

Small and medium‑sized retailers fear the added expense could be unaffordable given existing overheads for rent, salaries and stock, prompting calls for the county to specify whether the fee is a one‑time charge per business or recurring per platform.

The Finance Act, assented on 31 July 2026, provides the legislative basis for the licence but does not detail the fee schedule or the interaction with existing premises‑based licences, leaving traders awaiting authoritative guidance from the Liquor Licensing Board.

The controversy emerges as Nairobi continues digitising liquor licensing through the LiquorPay platform, which aims to streamline applications, payments via M‑Pay and issue provisional licences pending inspections.

Earlier fee hikes in 2023 – raising the general retail liquor licence from Sh25,000 to Sh100,000 – already generated objections, and a 2024 technical working group review highlighted ongoing tensions between revenue goals and business sustainability.

Some traders have alleged enforcement actions such as raids and stock confiscations linked to non‑payment of the online licence, but independent verification of these claims is lacking, and the county has not issued a formal response.

RETRAK’s engagement with the Liquor Licensing Board includes a request for the board to update licence terms, clarify territorial application and outline the responsibilities of retailers, marketplaces and delivery operators.