Uganda Parliament drops Alcoholic Drinks Control Bill

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Members of Parliament have unanimously rejected MP Sarah Opendi’s Alcoholic Drinks Control Bill 2023, which was aimed at imposing sweeping changes on the production and sale of alcoholic beverages.

In their minority report tabled by Christopher Komakech (Aruu County, Independent), proponents of the Bill cited public health concerns as their driving force.

“In light of the worrying statistics by the World Health Statistics Report, 2023 which indicates that Uganda boasts a high per capita alcohol intake, topping the list in Africa and placing fifth globally. And the Uganda National Household Survey (UBOS, 2021) revealed that young adults aged 18 to 35 years constitute the highest percentage of drinkers,” Komakech said.

“On average, a Ugandan consumes 12.21 litres of pure alcohol annually, hence exceeding safe limits and at risk of getting many chronic diseases. We conclude that there is an urgent need to regulate the manufacture, importation, sale, consumption and advertisement of Alcoholic Drinks in Uganda,” he added.

(Photo by Maria Wamala)

Economy endangered

While presenting the majority joint report of the trade, tourism and industry committee and health committees, Sylvia Nayebale said that such a Bill would significantly impact the country’s economy.

“According to the Uganda Manufacturers Association (UMA), the top two alcohol players (Nile Breweries Ltd and Uganda Breweries Ltd) contribute sh1.1 trillion annually as tax revenue. Alcohol Industry also contributes sh205b towards the revenues by grain farmers in Uganda,” Nayebale, also chairperson of the committee on trade, tourism and industry, said.

She argued that a 2021 report that Nile Breweries Company commissioned to assess the market size of alcohol beverages in Uganda showed that of the 110.6 million litres of alcohol that were consumed at the time, 67.7 million were from illicit alcohol. 

She said that the market of informal alcohol in Uganda is estimated at sh2 trillion but is not monitored by the Uganda National Bureau of Standards (UNBS) and no tax revenues collected.

Sylvia Nayebale Woman MP Gomba and chairperson of the Committee on Trade Tourism and Industry. (Photo by Maria Wamala)

A copy of the majority report shows that the Bar Owner's Association also disagreed with the Bill arguing that associated costs of shifting away from restricted areas would be expensive should the law be passed.

Under Clause 5(7), the framers of the Bill had sought to restrict bars four hundred metres away from schools, health units, residential areas or places of worship.

Additionally, bars were also prohibited from fuel stations and required to conform to prescribed standards under any written law or regulations issued by the Minister.

“The projected rent based on 170 square metres as the average for prime retail locations at a current rate of $22 (about sh83,270) per square meter comes to $3,740 (about sh14,142,900) compared to the current monthly rent of a 3-bedroom residential property $2,600 (about sh9.9m) (Knight Frank, 2023) which are typically refurbished into bars in residential areas,” the majority report observes.

“Bar relocation from residential areas as proposed by the Bill would most likely mean a spike in rent expenses of $1,140 per month impacting the working capital of many bars. This increased spending will have implications for the tax contribution of the business. A 40% drop in bar and retail outlet revenue and a shillings 2.6 trillion loss is projected,” read the report.

Bill contradicts many laws

The Attorney General Kiryowa Kiwanuka slammed Opendi for refusing to consult him for legal advice.

AG Kiryowa Kiwanuka. (Photo by Maria Wamala)

“This Bill in our view offends Article 93(a) (2) of the constitution which provides that we shall not proceed on a Bill which has a financial implication on the Consolidated Fund or an alteration on that. That is why article 94(4) (c) and Rule 121 of the Rules of Procedure require a member to get assistance from a department that manages a bill that is before the house,” Kiryowa said.

He argued that the Bill contradicts many laws such as the Uganda National Bureau of Standards (UNBS), the Employment Act and the Industrial Act.

“There is nothing in the Bill which is not regulated by an existing law except the time which also can be managed through licensing. We have licensing laws which license the use of premises in different places. I strongly advise and pray that in order to avoid causing regulatory confusion, we wholly reject this Bill and then the good ideas that we have picked up here, we can find the necessary laws where they are supposed to be input, to regulate,” Kiryowa implored.

Unlike previous instances where laws have either been passed or rejected after debate, Opendi’s Bill was not allowed to proceed to this stage.

This was after Jonathan Odur (Erute South, UPC) warned that proceeding without subjecting issues raised to a vote would be in contravention of the law.

“At the point this matter of law is raised, if the House agrees that there is a charge, we are stopped from proceeding. If we go to debate without determining this point of law, it would raise questions,” Odur said.

While defending her motion Opendi (Tororo District Woman MP, NRM) warned that failure to clamp down on laissez faire boozing was a danger to the country.

Tororo Woman MP Sarah Aceng Opendi. (Photo by Maria Wamala)

Citing findings from the Uganda Cancer Institute (UCI), she said “nearly all drinks that were sampled on the market, especially the liquors, had some very dangerous substances that would have adverse effects on the health of the people”.

"We need revenue but we also need a healthy population that will be productive and support this economy," Opendi urged. 

DeDeputy Speaker Thomas Tayebwa interacts with Sarah Aceng Opendi Woman MP Tororo. (Photo by Maria Wamala)

She asked deputy Speaker of Parliament Thomas Tayebwa to give her more time to prepare as some lawmakers who supported the Bill had travelled upcountry for oversight. When the matter was put to vote for it to proceed to second reading it was rejected.