Safe alcohol good for health, income

Evelyne Naipona, a mother of four, was a small-time shopkeeper four years ago struggling to put food on the table.

As she toiled to provide for her family in Olchorro in Narok County, she harboured a burning ambition to join her husband, Isaac Lemein, in barley farming. Evelyne had seen many of her neighbours growing barley send their children to school, build permanent homes and generally improve their standard of living.

She closed her shop to join her husband in their smallholder-contracted barley farming. It was a leap of faith, but today, she not only farms several hundred acres of barley, but she also owns a tractor, providing her with an extra income.

She is one of more than 30,000 farmers across the country who last year earned Sh2.2 billion from barley. Evelyne’s story came to mind as the 47 governors were taking their oaths of office.

HIGHER PAY

There are high expectations that the leaders will make an impact on the lives of ordinary Kenyans. The quest for change at the grassroots saw 27 new governors elected on August 8, yet the challenge of governing and delivering services is only getting harder.

The demand for higher pay by teachers, nurses and other civil servants will continue as the counties face additional pressures to deliver services.

According to the United Nations Development Fund, nearly four out of 10 Kenyans have no jobs, and worse still, they do not have the level of skills to make them marketable.

The UN Population Division, in its 2017 edition, forecasts that Kenya will have a nearly constant population of 10 million youth aged between 20 and 30 from 2015 to 2030.

The unemployment problem is compounded by the challenge of millions of low-skilled, idle, and disgruntled young men open to the influences of petty crime or radicalisation.

TOUGH CHOICES

In the next five years, counties will face budgetary squeezes that will force them to make tough choices. The big question is how do we solve the leadership and money questions in dealing with economic and social development challenges counties ought to handle urgently but cannot afford?

This is where the private sector comes in through partnership. As a company with strong roots that go back to 1922, Kenya Breweries has been a strong catalyst for economic, social and cultural development. A couple of years ago, the country faced a serious crisis of illicit alcohol. Families watched helplessly as their sons and daughters were wasted by unsafe illicit alcohol.

A solution to this crisis was needed. In collaboration with the National Treasury and the Ministry of Health, we found the answer in a sorghum-based value drink.

The beer now known as Senator Keg was priced to be affordable to the masses, while meeting the highest hygiene standards.

ILLICIT ALCOHOL

It became an instant hit and has over the past decade continued to fulfil its social mission of reducing the consumption of illicit alcohol, creating jobs, contributing to the growth of excise taxes, investor revenues and profits.

According to a recent study by McKinsey, a global management consulting firm, with every 39,000 litres of pure alcohol switched from the informal to formal market, a life is saved.

The study also found that more than 80,000 businesses are in one way or the other, dependent on KBL.

Together with farmers, transporters, distributors, stockists and bar owners, we have touched the lives of 1.8 million people.

We see major opportunities in our partnerships with the county governments, starting with the commitments we made in July to reopen our Kisumu factory.

INDIRECT JOBS

This will see KBL invest Sh15 billion, which will benefit 15,000 sorghum farmers and lead to the creation of 100,000 indirect jobs in farming, distribution, and retail, and increase taxation by Sh3 billion.

Our view is that the full potential for industry, the government and society has not been reached as 40 to 65 per cent of the alcohol sold is in the informal segment of the market.

This has a potential negative impact on health, industrial growth and government revenue. 

We are working closely with county governments to involve more communities in our value chain and ensure that we buy 100 per cent of our raw materials locally.

PREDICTABLE POLICY

However, for this to work, national and county governments should institute measures to focus on initiatives that benefit communities.

We look forward to an environment of predictable policy and a regulatory environment to allow us to plan our investment over the long term.

Mrs Karuku is the managing director, KBL. [email protected]