Alcohol legislation in Kenya poses a threat to online delivery services and your weekend enjoyment plans
In recent news, the Kenyan government has proposed a ban on online alcohol sales and home deliveries, aiming to address concerns over teenage drinking and substance abuse. This move, if enacted, could have significant implications for businesses, delivery workers, and the digital economy in the country.
The growth of online alcohol sales in Kenya has been substantial since the COVID-19 pandemic, with many customers preferring the convenience of digital platforms and delivery services. For businesses such as supermarkets, e-commerce platforms, restaurants, and small wine shops, online sales and home deliveries have become a significant source of revenue. A licensed liquor store owner in Nairobi, Denis Magara, reports that 60 to 70% of his sales come from online orders.
The proposed ban, therefore, poses a threat to these businesses, especially those that have adopted online platforms during COVID-19 as a preferred sales channel. Many could face potential closure or severe revenue loss since many customers now prefer the convenience of home delivery over physically visiting bars or stores.
Delivery workers, too, stand to be affected. Riders and couriers who earn per delivery from alcohol sales will be directly affected, facing job cuts or reduced income due to the removal of home deliveries. Platforms like Glovo offer alcohol deliveries under 45 minutes in Kenya, making it a growing segment of the digital economy.
The ban also extends to influencer and celebrity endorsements on social media, undermining a major digital marketing strategy for alcohol brands and income streams for influencers who promote alcohol-related content. Some small creators earn between $300 to $2000 a month through paid alcohol-related posts, and a ban could potentially wipe out their niche.
The government's rationale for these bans is to reduce alcohol and substance abuse, especially among youth, by limiting availability and marketing avenues. Similar measures, such as requiring ID checks, limiting delivery hours, and mandating digital licenses for online alcohol shops, could be implemented instead.
Looking at other countries, South Africa has found solutions to balance alcohol sales and regulation. Regulators introduced time-based delivery limits and licensing for online sellers after years of alcohol bans. In the UK and parts of the US, delivery drivers are trained to check ID when delivering alcohol online.
In summary, the bans will disrupt evolving business models in alcohol sales and adversely affect delivery workers relying on this sector, while aiming to address public health concerns around alcohol abuse in Kenya. The proposed ban could potentially impact a growing segment of Kenya's digital economy and lead to the closure of businesses, the loss of a key revenue stream for delivery platforms, and the unemployment of thousands of gig workers.
The ban on online alcohol sales and home deliveries in Kenya, if implemented, could negatively impact various sectors of the economy, such as supermarkets, e-commerce platforms, restaurants, small wine shops, and delivery services, as they rely heavily on these channels for revenue generation, potentially leading to closure or severe revenue loss for many businesses. The ban could also affect delivery workers, with riders and couriers relying on alcohol sales for income facing potential job cuts or reduced income due to the removal of home deliveries. Furthermore, influencers who earn income from promoting alcohol-related content on social media could also suffer significant financial losses if the ban is enacted, potentially wiping out their income streams.
