Dar investor puts Sh45bn ‘viroba’ factory up for sale

Dar es Salaam. A six-month old $20 million (Sh45 billion) investment for production of spirits has been put up for sale following the recent ban on alcohol sachets that takes effect from today.

The Citizen has established that the investor of Nyati Spirtz, who was trading under the brand of Don Nyati, is opting out and is looking for interested buyers for his property near Julius Nyerere International Airport.

A survey by The Citizen indicates that more traders in the business were also closing shop but some have petitioned the government to extend the time for them to sell stocks worth millions of shillings still in the warehouses.

According to the owner, who requested not ot be named, the decision to sell the plant at Kipawa Industrial area came after the government’s January announcement for the total ban of the products.

However, he was not ready to reveal the selling price. “The plant is suitable for making of soft drinks and is located on a three-acre piece of land with four newly constructed modern warehouses of 12,000 square metres each,” he said.

The advert for the sale was put on Kenya’s Daily Nation on February 14.

For its part, Megatrade Company, a producer of K-Vant alcoholic spirit, told The Citizen that, they had asked the government to extend the deadline in order for them to sell the remaining part of the stock.

“We still have a huge stock that can last for up to three more months. We were told that we would get the feedback tomorrow (today),” said Ms Harieth Lema, the company’s accountant.

But the government has insisted that the order to stop production of the spirits packaged in sachets will not be lifted, even temporarily, despite protests from companies involved in the business.

The Minister of State in the Vice President’s office (Union Affairs and Environment), Mr January Makamba, said the government made the decision in a bid to reduce mass consumption of cheap spirits by the public due to the various harms associated with the practice.

However, he noted that, they have received requests from nine companies to extend the deadline.

The minister noted further that the warning was issued in May last year during a Parliamentary session where they were cautioned not to bring in new stocks as of January.

Mr Makamba said following the order, the government woud intensify its search countrywide on importation, production, distribution and consumption of the product as of March, this year through the security and defence committees for environment at ward, village, division, district and regional levels.

He noted that, those found importing the product would be fined a total of Sh5 million or be sent to jail for two years or both, while those found producing will be liable to a fine of Sh2 million or two years in jail or both, while those distributing and selling will be fined Sh100,000 or three months jail.