Tobacco Bill: Traders Warn of Rising Costs and Illicit Trade

Businesses under the Pubs, Entertainment and Restaurants Association of Kenya (PERAK) have petitioned the National Assembly to hold nationwide public participation on the Tobacco Control (Amendment) Bill, 2024, saying the ongoing process has not adequately captured the views of affected traders.

The businesses presented signed petitions to Parliament on behalf of Kenyans from different constituencies, calling for physical public participation forums across the country before the Bill proceeds further.

PERAK says taking the consultations beyond Nairobi would allow businesses, workers, consumers and other stakeholders to submit their views on provisions they say could significantly affect their operations.

The Bill, sponsored by nominated Senator Catherine Mumma, seeks to amend the Tobacco Control Act by introducing a regulatory framework for emerging nicotine and tobacco products, including vapes and oral nicotine pouches.

It is currently before the National Assembly’s Departmental Committee on Health after being passed by the Senate.

PERAK National Chairman Michael Muthami said businesses were not opposed to regulation but wanted Parliament to adopt a more inclusive approach in reviewing the proposed law.

“We support evidence-based policies that protect public health while also taking into account the realities facing businesses, workers, traders and consumers,” Muthami said.

Among the contentious proposals are restrictions on flavours in tobacco and nicotine products, which traders fear could drive consumers towards illicit alternatives and hurt legitimate businesses.

Traders have also raised concerns over a proposal requiring businesses dealing in tobacco products to obtain specific county licences, arguing that the requirement could increase their regulatory burden and amount to double taxation for businesses that already obtain county permits.

Muthami urged the National Assembly’s Health Committee not to repeat what businesses described as shortcomings in the Senate’s consultation process.

The Tobacco Control (Amendment) Bill, 2024 is the first major proposed review of Kenya’s Tobacco Control Act since it was enacted in 2007.