Ban on Nairobi Nightclubs to Render 23,000 Employees Jobless, Bars Association Says

Pubs, Entertainment, and Restaurant Association of Kenya (PERAK) has said the recent ban on nightclubs in Nairobi will lead to massive job losses.

The association warned that at least 23,000 full-time and temporary workers earning over Sh880 million per month will be rendered jobless after Nairobi Governor Johnson Sakaja and his administration revoked the licenses of clubs operating in residential areas over noise pollution.

In addition, some 73,600 indirect jobs translating to Sh1.6 billion per month of employment income could also be lost while 800 DJs earning more than Sh40 million per night may lose their income, PERAK said.

“PERAK estimates that it will lay off 50% (13,000 jobs, KES 390 million a month) of its full-time workforce in night clubs due to the ban on night club licenses in Nairobi. It further estimates that 100% (10,000 jobs, KES 100 million a month) of the temporary employee will not be required due to the reduction in operations within nightclubs. 73,600 indirect jobs representing KES 1.6 billion a month in indirect employment income will be lost in Nairobi,” the association said on Tuesday.

“Each nightclub operates with 3 DJs, and/or a band who entertain patrons. Each DJ earns an average of KES 50,000 per night. Night clubs will have to lay off 2 out of the 3 DJs per club, leading to over 800 DJs with total income loss of KES 40 million per night losing their livelihoods.”

PERAK further said the ban is expected to take bar sales back to the COVID period where overall consumption of legal alcohol had declined by 30 percent.

It argued that most of the joints affected by the ban are compliant and the restriction has unfairly interfered with their ability to earn a living as honestly as possible and generate employment.

The association appealed to the county government to give the few non-compliant enterprises enough time to invest in soundproofing rather than closing them down.

“The UDA government extended the same treatment to businesses that had been shut down by Kenya Revenue Authority (KRA) due to tax offences. This will safeguard livelihood and government revenue,” it added.