SPEECH BY HIS EXCELLENCY HON. MWAI KIBAKI, C.G.H., M.P., PRESIDENT AND COMMANDER-IN-CHIEF OF THE ARMED FORCES OF THE REPUBLIC OF KENYA DURING THE COMMISSIONING OF EAST AFRICAN BREWERIES LIMITED (EABL) BREW HOUSE AND BOTTLING LINE AT TUSKER BREWERY, NAIROBI, 17TH FEBRUARY, 2010

Ladies and Gentlemen,

I am pleased to join you all this morning for the official opening of the East African Breweries Limited new Brew House and Bottling line.

I congratulate you on this 3.5 billion shillings investment. An investment of this magnitude no doubt marks a milestone for East African Breweries Limited.

This investment and the role you have continued to play in our economy is a clear testimony of the confidence East African Breweries has in the Kenyan economy. I take this opportunity to commend the company for investing in innovative technologies.

I also thank the company for contributing 23.4 billion shillings in taxes last year. I assure you of the Government’s support and wish you every success with this and future business endeavours.

Ladies and Gentlemen,

My Government views the private sector as a critical partner in realizing the aspirations of VISION TWENTY THIRTY.

We fully recognize that the success of our development objectives largely depends on a robust and innovative private sector that generates jobs, makes profit and pays taxes to finance national development programmes.

This is why the Government, through the Ministry of Trade, launched the Private Sector Development Strategy to facilitate an enabling environment for private sector growth in our country. The strategy revolves around the following goals:

1. Improving Kenya ’s business environment;

2. Transforming public institutions;

3. Expanding and diversifying trade;

4. Improving productivity and competitive edge, and

5. Promoting business enterprises and development of small and micro enterprises.

In this regard, the government is investing heavily in the construction of infrastructural facilities including roads, railways, sea and airports, power generation and distribution as well as water supply.

This financial year, for example, the Government set aside 140 billion shillings or about 16 percent of the total budget to the development of infrastructure. These investments are paying dividends as infrastructure has improved substantially in most parts of our country.

Public utilities are becoming reliably available and affordable. I am confident that Kenya will soon be among the best investments destinations in our continent.

Ladies and Gentlemen,

In addition to infrastructure and public utilities, the Government has also addressed the business regulatory and administrative regime which has been cumbersome and time consuming. We have taken a wide range of business licensing reforms. Out of the 1,325 licenses that were in existence before 2006, 315 have been eliminated, while 379 have been simplified.

The Government will continuously review trade and investment related legislations and create synergies between the public and private sector. I urge investors to take advantage of the improving investment environment and invest in various sectors of our economy including the beverage industry. Investment opportunities in this sub-sector include supply of farm machinery to barley farmers and establishment of can manufacturing and canning facilities.

Ladies and Gentlemen,

As we all appreciate, the beer industry has both positive and negative sides. For instance, retail outlets such as bars and restaurants not only offer entertainment but also hire thousands of workers. Kenyan farmers who supply the barley and sugar used in brewing earn their living from this industry. Distributors, stockists, transporters and other suppliers also profit from the industry.

But there are also health and social problems associated with excessive or inappropriate patterns of alcohol consumption. This can seriously impact individuals, families and society. It is, therefore, very important that Kenyans adopt responsible drinking habits. I wish to encourage East Africa Breweries to continue investing in responsible drinking campaigns.

Ladies and Gentlemen,

Despite regulations on illicit brew which have potential health risks on consumers, these illicit brews still make up to 45 percent of total alcohol consumption.

High consumption of illicit brews is mainly as a result of high beer prices forcing Kenyans to go for alternative sources of cheap liquor. To avoid this problem, the brewing industry should develop low priced beers made under hygienic conditions for the budget conscious consumers as a substitute to illicit brews.

I am aware that East African Breweries has developed a beer brand to cater for this segment of society. I urge more players to produce cheaper but quality products for wanachi.

Let me also take this to opportunity to urge our people, especially the youth, to desist from abuse of alcohol which can easily result in psychological and physical damage to the body. It is saddening to see young people at the peak of their productive life being ruined because of alcohol dependence and abuse.

I am particularly concerned that excessive consumption of illicit brews in some parts of our country has also contributed to breakdown of families and increased poverty. This is impacting negatively on the Government’s commitment to deliver a prosperous nation for all Kenyans in the next two decades.

The government will take steps to curb excessive alcohol consumption. However, individuals must also take personal decisions and guard against alcoholism that is a modern day threat to the well being of our people.

In conclusion, I wish to salute East African Breweries for continuing to be a top sponsor of sporting events in Kenya. Sport is a growing industry, and one that brings Kenyans together and has become a lucrative source of income. By sponsoring various sports activities, East Africa Breweries is playing its part in Kenya ’s social development and cohesion.

With these remarks, ladies and gentlemen, it is now my pleasure to commission the East African Breweries’ new Brew House and Bottling line.

Thank you and God bless you all.