How to set up a wines & spirits business in Kenya!

A model take away wines and spirits joint in Kasarani Nairobi!

In Kenya wines and spirits stores are privileged as they offer quality liquor and beer to people frequenting them. As a store owner you have to maintain variety and decorum too.

Getting Started

Most important aspect with starting wine and spirits shop is selection of location from where you operate this business. As different types of wines are imported from dealers for selling in retail you don’t need to bother much about raw as they would be collected as per the need. But you must arrange transportation facility to shift liquor from one location to the other when bringing them in bulk.

In the Alcoholic Drinks Control Act 2010 — commonly known as Mututho Law — the alcohol industry has become more regulated and, consequently, initial high start-up cost is required to cover licenses.

Basically, the following legal procedures and licenses are required;

• a liquor license that costs Sh50,000,
• Approval by National Environment Management Authority NEMA – Ksh3,000MCSK License – Ksh3,000
• a Nairobi City Council licence for registration of the business that attracts Sh3,500.
• Further, you will be required to pay for a health certificate that attracts Sh3,500.

Requirements for setting up

The requirements for setting up depend on your long-term goals and capital constraints. For instance, if you don’t have much capital you can look for a 10×10 ft room and set up a simple wines and spirit takeaway shop. 

With more capital you can set up a sit-in facility with chairs, tables and shelves. On average rent prices range from Ksh20,000 – Ksh50,000 depending on location.

Cost Breakdown

• Licenses – Ksh70,000
• Furniture (Shelves, Display area, Tables, Chairs etc.) – Ksh50,000
• Stock (Inventory) – Ksh50,000
• Miscellaneous – Ksh100,000
• TOTAL – Ksh270,000

Associated huddles

The first challenge you are going to face is intense competition. You will need to provide quality services and best prices in order to retain old customers who will in turn keep coming back with their friends. 

You also need to appreciate the challenge that you can only open your business from 5.00pm – 11.00pm on weekdays and 2:00pm – 11:00pm on weekends and public holidays.

At start up, it will be difficult to procure your products directly from the manufacturers as you have to gain a relationship with them, which will be build with time as your turnover also grows

Bullet points from my manifesto

1. Affordable Quality Health Care for all residents by rehabilitating existing health facilities  including Nzoia and Sinoko Community health centres.

2. Creation of job opportunities for the youth to fully participate in the economic development of our ward by empowering them to acquire skills and access to credit facilities in order to improve their capacity in the ward. this will achieve a plough-back effect! it will inject funds in our economy at ward level.

3. Universal education for all in the locality through disbursement of bursaries and scholarships to the deserving and vetted orphans, the needy and vulnerable children. 

4. Creation of job opportunities for the youth. Everybody needs work, but the modern world requires a networking approach, being a global village. By introduction of capacity building and training centres, we are hoping to equip the youth with skills relevant to the needs of the ward and contribution to the nation at large.

5. Through connecting Sinoko  Ward with the foreign and local investors which has been already planned we expect to initiate as soon as possible. Talk of peer mentorship and exchange of ideas.

6. Support Small scale Business enterprises, this being one area of my profession we hope to empower Growing business to be more stable than before.

7. Honest leadership through ultimate accountability ,transperancy, service delivery and community participation in governance.

8. Economic stewerdiship by rehabilitation of existing infrastructures I.e water accessibility, electricity supply, road maintance, and aggressive push for implementation of development plans by the county government etc

9. Re-engineering of farmers cooperatives , support table banking among chamas and Bodaboda Sacco among others to achieve bargaining power and control of our resources. This should see us achieve an all-year-round agriculture production chain with irrigation systems. 

10. Promoting, nurturing, marketing and sponsoring young talents to realize their full potential. 

POLITICS: THE GAME OF NUMBERS

Its a calculation

Let us assume that we can trust our media when they report that there are 40,000 MCA aspirants in the whole country for the 1,422 available slots. This means that each ward has an average of 28 aspirants’ pre-nominations! This is quite a huge resource you know!
Now let’s digest the implications of these figures;
1) ECONOMIC IMPLICATIONS
The aspirants pay an average Ksh.20, 000 to the parties to secure nomination papers. This adds up to 800 million. This is money from savings, loans, gifts, disposal of assets and God knows where else! Serious money released to the economy.
For an applicant to get necessary clearances as per sec.6 of the constitution; HELB(1050), DCI(1050), EACC(1000), CRB(2,200), KRA(0) They fork out a total of Ksh.5,300 each totaling to Ksh.212 million! This however ignores other overhead costs like transport, meals and kickbacks!
In order to mobile their troops to back them in the nominations, there is substantial facilitation required. For the general elections, the IEBC capped expenditure by MCAs at 10.3 million. Suppose we say at nominations, we can only have these aspirants use 10% of this limit each; this will mean each one needs at least Ksh.1 million to successfully campaign for nominations! In total, Ksh. 40 billion will be injected into the economy to facilitate campaigns for nominations alone!
In a nutshell, pre-nominations campaign for MCAs alone has a gross contribution of a little over Ksh. 42 billion to the country’s economy! If there is one man who loves this game of figures is CS Henry Rotich!
Throw in some other figures from MPs, Senators, Governors, Women Reps and presidential candidates!

2) SOCIAL IMPLICATIONS
There are 1,422 administrative units called Wards in the 47 counties across the country. According to IEBC stats, there are about 14.4 million (Give or take due to pending register clean up) registered voters across the country. This is not inclusive of prisoners and those in the diaspora. A quick calculation means each ward has an average 10,200 voters.
As at Monday 6th March 2017, Kenya has a population of 48,066,894 citizens. (Source: www.worldometers.info). With this in mind, each ward has an average population of 33,802 people! A further breakdown shows that each ward has an average 23,000 children below the age of 18 (including adults who have not registered!)!! Eeiiish! Kenyans can be productive I say!
Okay, let’s look at the stats soberly! Let’s say after nominations, only 12 of the 26 aspirants actually get nominated and actually run for the post of MCA! The law here is very lenient and grants the winner the seat by any majority! Not necessarily 50%+1!
Assuming this is a hotly contested seat and give the winner 42%(4,284 votes), The runners up 35%(3,570 votes), The second runners up 20%(2,040), then the rest of the aspirants can share the balance in whatever ratio! At this point, who cares? We have an MCA!! Yeeeiiiiy!
However, we all have this tendency to negative ethnicity! Unhealthy competition and always feel the need to divide the electorate based on party lines, religion, race…name them! At the end of the day, we create enemies in the society!
Suppose you are the winner, 4,284 votes! Say these voters who voted for you have families of about 6,000 people (Unregistered adults and kids), That means only 10,000 people supported your candidacy by default! How do you propose to manage over 20,000 citizens as enemies for 5 years in your ward? This is two thirds of your ward my frenn! Fanya hesabu zako poa!
Endeavor to co-exist with your opponents! Healthy politics is about compromise and conceding honorably! Don’t mess this generation only to win an election and divide the future generations in the process!

CDF: The new corruption leak-hole!

With politics, we always are at crossroads.

As a country that is ever grappling with an exploding annual budget that exposes the taxpayer to a higher cost of living, legislators should prioritize their functions of oversight, legislation and representation and strengthen mechanisms of monitoring development and other projects in their constituencies.

However, barely two weeks ago, a call was placed on proposed constitutional amendments, key among them to establish the 

1. National Government Constituency Development fund, 
2. National Government Affirmative Action fund and the 
3. Parliamentary oversight fund. 

These proposals wish to further drain cash from the consolidated fund under Article 206 and from the Contingency fund under Article 208 of the Constitution of Kenya.
The introduction of the CDF in 2003 was a relief to many Kenyans especially those residing in rural areas; a chance for them to chart their course of development through decentralization of resources and decision making through their elected Members of Parliament. 

Where the funds were prudently used, schools got face-lifts and children had access to better learning environments through provision of learning materials, residents received better healthcare through improvement and constriction of health facilities and farmers were able to access markets easily. However, the corruption monster found a home in some constituencies and monies started falling from the cracks, hampering and stagnating development for the common man. Seven years into the CDF, Kenyans voted in a new Constitution, a key highlight of the milestone being the establishment of devolved governments.

Save for key national installations such as security; autonomy, power of expenditure and decision-making was given to the public in order for them to exercise rights and freedoms guaranteed in the Constitution. Thus, finally the common man had even greater power to interact with their taxes and supervise their use closer home. 
Over time, it is presumed, the National Assembly should have released management of funds to counties and shift focus to its key role of oversight and accountability through legislation of relevant laws and oversight into their implementation. 
As opposed to management of funds, they would activate powers granted to them in the same constitution to determine allocation by allowing counties to access better funding for furthering constituency and other development agenda. Thus, the Act of Parliament that established the CDF should have been fizzled over time to allow devolution to take root. To seek the entrenchment of the National Constituency Development Fund in the Constitution is therefore backtracking on the gains on autonomy and resource management envisaged for the people of Kenya.

This duplication of roles in funds management, especially, can be a catalyst to further corruption, sinking poverty levels deeper. So is the proposal to establish the National Government Affirmative Action Fund in the Constitution.

To drain the country’s contingency funds over functions that can be delegated to county governments with the National Assembly playing oversight is a path likely to lead to more destruction than good. Mark you this is the same fund being among those targeted by women representatives who are also demanding funds to allow them implement ‘their development agenda’. 
That the same fund duplicates activities such as bursary distribution, which is also undertaken by the different constituency development funds, leaves a lot to be desired. 

Dear mr. Politician...

Usikubali kucheswa tena?

Kenya is bigger than poll winners and losers. Nothing should be hoisted above the greater interests of the country. Unless the end of the world was scheduled to take place on or before August 8^th 2017, nothing else should be allowed to lead to the uprooting of Kenya from Space.

Neither the protestations of losers nor the merry-making by winners of elections should be allowed to stop Kenya’s clock for a second. And any display of unfounded protesting or revelry by political camps must be stopped from returning Kenya to the brink of an apocalypse post August 8th.

The dreary but man-made dooms-day cult atmosphere being forced onto our political scene by politicians seems to suggest that Kenya will explode into a huge ball of fire if one camp wins and the others lose. The folly of this mindset is that in any contest there must be winners and losers anyway. Commonsense should dictate that winning and losing are two sides of the same coin.

The reason the end of political contests turns ugly is all about lies peddled about imagined gains lined up for grabs for the supporters of a party or a politician.

Yet, often times, when wananchi join political contests, they hardly acknowledge that besides having the power to hire and fire politicians, they are mostly reduced to bystanders in duels that hand them very little in return. The same gullible wanjikus get duped into lighting bonfires and erecting roadblocks all over.

The 2007/8 post-election mayhem should have taught us that it is dangerous to elevate partisan political interests – whether expressed by individual politicians or political parties – above the more supreme interests of the nation.

Whoever could be leading Kenyans down the same cursed path the last election culminated in is not worth the political position he or she is seeking.

But why, pray, do we so easily agree to be blindfolded by political competitors? There must be numerous reasons for this but five, for me, seem real in our situation.

One: We seem to literally believe that an election is a matter of life and death. While the taunting of winners in a political contest can irritate losers, it is immaturity or greed or lies that can make losing fatal. Put otherwise, it is outright silly to make big business out of losing or winning an election.

Two, we don’t realize that ours is predatory politics. So just like in the jungle where the highlight of the hyena’s triumph is in snatching of a piece of bone from a lion, so is our political culture.

And assuming the rest of the country is the gazelle that the lion is making dinner out of, there is really nothing at all for the gazelle whose time has not yet come to celebrate on account of the presumed victory of a scavenger.

Sweet nothings promised

Forgetting that our politics is primarily driven by self-interest is essentially forgetting that wananchi should never peg their hopes for the future on the sweet nothings promised from campaign platforms.

Instead, wananchi should be more concerned with what, for instance, Vision 2030 or the Constituency Integrated Plan for Development (CIPD) or the new Constitution and not on politicians’ theatrics or empty promises can do for them.

Three, none of us is immortal and one day the country we are so ready to burn will belong to our scions. Therefore, should Kenya survive till, say, 2082, it will still have politicians.

And guess what? None of them is born yet but whoever they will be, they will need the space we call Kenya to practice their trade. So behaving as if Kenya should evaporate as camp “A” lost to camp “B” on August 8^th 2017 is willful idiocy.

Four, we believe the lie that there is something real for many of us in the so-called “being in government”. This is a sick fallacy. The truth is that only a handful of political supporters end up seeing the real inside of the government. A few wheeler-dealers may take occasional peeps through the perimeter fence but that is the closest they can get.

Five, we wrongly tend to believe that our messes of today will be cleaned by the generations to follow.

There are no guarantees that after a five-year cycle culture of razing down buildings, uprooting railway-lines, maiming and even killing our competitors, we can simply say abracadabra and voila!… Every mess is fixed pronto.

Nothing should be hoisted above the greater interests of Kenya. Not even political duels, whoever the kingpins are.

Why I will vie for MCA post in my ward!

When you vote based on popularity, the county assembly is technically empty for lack of expertise!
(Picture courtesy of Baringo County Assembly)

It’s interesting to see the Devolved government units take shape. Of interest is that the 47 units of government not only have an executive to implement the local policies but also have a locally elected county assembly. The County Assemblies are the key institutions in the county that will represent, legislate and offer oversight in the running of the county.

The Members of the County Assembly (MCA) are elected from each ward and a few more nominated to ensure that there is equitable representation of all people. This includes women, youth, persons with disability and marginalized communities in the county. The MCA’s thus have first and foremost responsibility to ensure that the voice and preference of their subjects, so to speak, is present at the table of decisions.

They secondly have a law and policy making responsibility. The laws and policies that they make is what makes the work of the county government possible. It provides the desired end while making provisions of how to get there.

 Thirdly they have an oversight role in which they hold the power to approve, check and follow on every matter being conducted in the county. Theirs is to check the powers of the executive at the county level(Governor)!

This therefore means that MCA’s have a greater mandate than was wielded by their predecessors, the councilors, who operated in the local authorities. They have to take this mandate with the weight it deserves.

But standing in their way is their capacity to handle this mandate.

How well do they understand their legislative and oversight role? What qualifications do they bring to the table of decisions especially where complex matters of development are concerned? There is also the concern of their remuneration against the work we expect them to play. 

From my recent interactions with MCAs and those around them, it has emerged that they had very different expectations in as far as their roles are concerned. Of concern is that some have not internalized the principle of separation of powers as entrenched in the constitution. That they will not be able to engage in direct service delivery is already a matter worrying to many.

One would understand their dilemma. In a country with nascent political party ideologies and thus no binding party policies expressed in manifestos, every person seeking election goes out promising different things. Some of the promises though exciting to the masses are untenable.

So once one is elected, they realize that they have to honor their promises but cannot do so directly. There are collective plans and budgets to be made and this means trade-offs so as to work within the resource purse available. Their wit in making the budget thus will be of essence to ensure that they can accommodate other proposals while ensuring that theirs are equally addressed.

But how equipped are the MCAs to carry out this mandates.

Do they have the expertise or at least access to expertise to ensure their effectiveness?

 How well are the County Assembly Service Boards resourced to ensure that the MCAs have offices to operate from? In moving forward it emerges that there is a lot that needs to be done.

 In the short term there has been need for continuous capacity building especially after the formation of committees. Some of those committees have had to be merged in some counties given the number of MCAs.

The office of the speakers also need sufficient support to ensure it has the technical support necessary for effective performance. In the long term, there may be need to review the educational and professional qualifications for election of MCAs as well as the remuneration of this position so as to attract high caliber professionals. 

Kenya shall be changed by ordinary people like you and I who are willing to venture into the uncommon, do things differently and inspire others in the process. Let’s join hands in this exciting journey in service to God and Country.

Am diving in for the position of MCA; I will offer my professional expertise in Administration, Finance, Audit and strategic planning. I will spearhead capacity building within the county assemblies and roll-out a peer-mentorship programme for MCAs across the nation. There won’t be need for MCAs to travel abroad for bench-marking tours! Oh! Hail the new approach. This is a game changer!

Does your MP know this?

Kennedy Opio consulting with the Deputy President at a past event!

It is now an open secret that one of my friends and very knowledgeable youth, Mr. KENNEDY OPIO, has been approached by several people to run in Likuyani Constituency as Member of Parliament in 2017. I took particular interest in his quest for various reasons;

First, he is a great guy as a professional. I just didn't know how he was planning to articulate this with the murky politics that is characteristic of Kenya.Crossed fingers!

Secondly, being an MP in Likuyani meant he was to directly represent my people... including myself and my baby mama along with my kids, parents and all people around me! That's quite a responsibility.

Thirdly, with the devolved government structures, I got curious to know if this ninja understood what would be expected of him! What his roles were! Would he look out of place in the role or can my people count on him? 

You see, politics is not about growing a pot belly and driving gas guzzlers! Its not about your access to public coffers for personal benefits! Its more of a calling. Sio hii pere pere ya ooh nitawaletea barabara, ooh CDF mara ooh bursary! And in particular I was looking out for those old lines!
I must say how he discussed the roles of an MP and specifically how he intended to pursue this left me satisfied. In his own words;
 "...I have become conscious of the roles and responsibilities of a Member of Parliament (MP). An MP has three main responsibilities.

First, and the most critically important function of a Member of Parliament, is REPRESENTATION. This responsibility is derived from the first chapter of Kenya’s constitution, which gives the sovereign power of the Kenyan State to the Kenyan people. The second clause explains how the people can exercise this power; either directly or indirectly!
 Directly means all 40 million plus Kenyans meet and agree whenever we need to make policy or pass laws. Indirectly means we elect a small group to represent the rest of us, and bequeath on them the responsibility of making decisions for the rest of us. Indirectly is the practical way to do things, which is why we elect the President, MPs, Senators, Governors, women reps and MCAs.

An MP is therefore in office primarily to represent the constituency from which he or she was elected. I must emphasize something here; the MP represents the constituency that elected him or her, in its entirety; NOT the individual voters from that constituency who voted for him; Just the same way a President once elected is President of all Kenyans not just the people who elected him.

This is an important clarification because there are some MPs who go to the National Assembly to represent the voters who elected them, and deliberately isolate voters who supported their rivals and justify it on the basis that they did not vote for them. It is also important because representation means an MP is required to seek their constituency’s views on an issue before taking a public position on it.

Secondly; an MP is required to LEGISLATE; make laws. ‘Parliament’ actually means a representative body having supreme legislative powers within a State. This means parliamentarians are representatives of the people meeting to debate and pass laws for the people. In fact the reason MPs have immunity to say anything about anyone while in the precincts of Parliament is so that they are not limited on what they can discuss or pass laws on. We look up to MPs to make laws that represent the values of the Kenyan people.

Finally, an MP is responsible for OVERSIGHT OF GOVERNMENT OPERATIONS. As per the constitution MPs as representatives of the people are mandated to question anyone delivering services to Kenyans. They have a responsibility of ensuring that the President; His Executive; the Government Officials and Public Servants, Security Agencies, etc are working only as per how the people want them to work; and to ensure whatever policies and administration decisions are made serve the people’s interests, above all else.
They therefore have the power to summon literally anyone and stop anything that goes against the people’s wishes.

These are the ONLY three responsibilities given to our MPs by the constitution. Other public responsibilities are given to people holding different offices. The development mandate MPs are laying claim on is a function of County Governments.

Most of the current 290 MPs understand this. I am convinced they know CDF is now irrelevant under the new constitution, after devolution kicked in. However they want to continue having a public fund they can do local politics with.
They also want to continue cheating local voters that their (re)election should be based on how many roads they have built; how much bursary they have given out; how many buildings they have put up, etc. Well, now we all know what is NOT their job!

Their job and what we must judge them on in 2017 is:
 (i) How effectively his or her constituency’s views affected national issues and decisions;
 (ii) How closely national laws passed in parliament aligned to the values and principles of the constituency they represented; and
 (iii) How effectively they audited and oversaw government operations especially as regards how they affected their constituency. Period!

Meanwhile if I was an MP today I would start thinking about how to introduce and institutionalize a fund that is in line with my mandate; maybe one that supports MPs to hold regular constituency-wide barazas to collect views on national issues before I take a position on it in Parliament. It would make more sense.

But I am not an MP … yet.

So all I will do is demand that Kenyans recall any MP who seeks to return CDF to Parliament, so that the constituency they represent can elect an MP who actually understands what their responsibility and mandate as an MP is."

As this guy picked up his mug of coffee to take a sip, I breathed with relief and hope! A hope for my generation and the next generation! Its time to elect leaders who are focused and committed. Leaders who have the best interest of their people at heart! It doesn't matter what party Ken will use to seduce his way to the August House, he has my vote, my bae's vote, my mama's and our shamba boy's vote. Am determined to help harvest votes from all quarters for him! You go muheshimiwa. Umeiva!