Parliament Halts Alcohol Bill

Parliament has blocked the Alcohol Control Bill, 2023, which sought to regulate the purchase, sale, and consumption of alcohol in Uganda. The bill, introduced by Sarah Opendi, Tororo District Woman Representative, in November 2023, also aimed to establish specific times and locations for alcohol sales.

The debate was halted during a plenary session on Tuesday, August 13, 2024, chaired by Deputy Speaker Thomas Tayebwa. During the session, Parliament’s Committees on Health, Tourism, Trade, and Industry presented a report that raised significant concerns about the bill's potential impact on government revenue.

One of the key provisions, Clause 14 of the proposed bill, sought to regulate the hours of alcohol sales, making it illegal to sell or consume alcohol before noon or after 6:00 a.m. Violators would face penalties of a 2 million shilling fine, a 10-year jail term, or both. The bill also included clauses prohibiting the sale of alcohol in passenger service vehicles, to enforcement officers, and to individuals under the age of 18.

In the joint committee report, read by Sylvia Nayebare, Gomba District Woman MP, it was recommended that the House immediately terminate the motion for the Second Reading of the Bill. Nayebare emphasized that the committee was limited in its ability to consider amendments that would impose financial burdens on the Consolidated Fund and urged the government to focus on combating the illicit alcohol trade, which accounts for 65% of alcohol consumed in Uganda.

The committee also noted that the alcohol sector is a significant employer and contributes substantially to the economy. Therefore, any regulation of the industry should be fair, balanced, evidence-based, and sustainable, considering all stakeholders involved.

However, a dissenting minority report presented by Christopher Komakech, Aruu County MP, argued that the bill is necessary to regulate excessive alcohol consumption and its related social issues. Komakech stated, “Restricting hours of sale and consumption of alcohol is a commendable step towards enforcing responsibility among citizens who struggle with alcoholism.”

Attorney General Kiryowa Kiwanuka advised lawmakers against debating the bill, noting that existing laws already cover most of the proposed regulations, except sale timings, which could be addressed through licensing.

Despite the opposition, Opendi defended her bill, arguing that it aims to regulate the manufacture, sale, and consumption of alcoholic drinks to ensure public health. “We need revenue, but we also need a healthy population that can be productive and support the economy,” she asserted.

A 2021 study by Makerere University revealed that the alcohol industry contributes 38.7% to Uganda’s tax base, with tax revenue increasing in tandem with alcohol sales at a rate of 76%. The study underscored the alcohol industry's importance to Uganda’s tax revenue growth, contributing 77.3% to the economy.

According to the World Health Organisation (WHO) Statistics 2023 Report, Uganda ranks among the leading alcohol consumers globally, with an average of 12.2 litres per person annually—double the African regional average of 6.3 litres and significantly higher than the global average of 6.18 litres per person per year. 

In the East Africa Community bloc, Uganda is the largest alcohol consumer in East Africa, with an alcohol per capita consumption of 9.5 litres annually, surpassing Kenya (3.4 litres), Tanzania (9.4 litres), Rwanda (9 litres), and Burundi (7.5 litres).

The November 2022 Uganda Alcohol Report estimates that there are between 5 to 12 million alcohol drinkers in Uganda, consuming approximately 110.6 million litres of alcohol annually. The report valued Uganda’s alcohol industry at around 2 trillion shillings and highlighted that over 65% of the alcohol consumed in Uganda is illicit, costing the government 616 billion shillings in lost revenue.