The Kenya National Chamber of Commerce and Industry has raised concerns over the Tobacco Control (Amendment) Bill 2024, becoming the latest business body to poke holes on the proposed changes in law.
This is after the Retail Trade Association of Kenya (RETRAK), the Kenya Association of Manufactures and the Bar, Hotels and Liquor Traders Association also raised concerns over the proposed amendments, amid appeals to the Senate to throw out the bill.
In its submissions to the Senate, KNCCI has warned that some of the proposed measures risk over-regulating the sector and undermining formal trade, particularly for micro, small and medium-sized enterprises.
It warns that provisions could disrupt legitimate trade, increase regulatory uncertainty and compliance costs, and fuel the illicit tobacco market if enacted in the current form.
The chamber, while supporting public health measures aimed at protecting minors from tobacco and nicotine products, said lawmakers must ensure the law balances health objectives with economic realities and enforceability.
KNCCI argued that introducing additional licensing and registration requirements for tobacco retailers could create duplication with existing county licensing systems and national tax regulations.
The chamber warned that extra permits would increase the cost of doing business, lengthen approval processes and expose traders to inconsistent enforcement.
“Overly restrictive or duplicative compliance frameworks can have the unintended effect of pushing activity out of the formal sector and into informal or illicit channels,” the chamber said in its memorandum to Parliament.
KNCCI is the national apex body representing businesses across Kenya’s counties and sectors, including manufacturers, import, distribution, wholesale, retail, hospitality and logistics.
“Our members are directly affected by regulatory measures that alter licensing, trade requirements, packaging rules and retail access conditions for regulated products,” KNCCI chief executive, KK Mutai, said.
The business lobby recommends that retail trade remain under existing county licensing frameworks such as the Unified Business Permit, while any national licensing requirements be limited to manufacturers and importers already regulated under the Excise Duty Act.
The chamber also objected to a proposal seeking to ban single-use plastics in tobacco and nicotine product packaging through the amendment bill.
KNCCI said Kenya already has sufficient environmental laws under the Environmental Management and Coordination Act and the Extended Producer Responsibility regulations to handle packaging waste and pollution.
According to the chamber, introducing plastics restrictions through tobacco legislation would create regulatory overlap, increase uncertainty for manufacturers and distributors, and shift focus away from practical waste management solutions.
Instead, KNCCI urged Parliament to strengthen enforcement of existing environmental regulations and encourage coordinated compliance between health and environmental agencies.
The chamber recommended using current take-back, recycling and recovery systems under the Extended Producer Responsibility framework rather than imposing blanket bans.
Another contentious proposal is the planned restriction barring the sale of tobacco and nicotine products within a 100-metre radius of schools and other facilities primarily serving persons under 18 years.
KNCCI warned that the rule could severely affect businesses operating in densely populated urban centres where schools, shops and residential areas are closely integrated.
The chamber said the measure could effectively amount to a ban on lawful retail operations in many towns and cities, potentially forcing the closure of thousands of licensed businesses despite their compliance with current laws.
It cautioned that shutting down legitimate outlets would not eliminate consumer demand but could instead expand the illicit tobacco market and informal trade networks.
As an alternative, KNCCI has recommended stricter enforcement of age-verification requirements, visible warning signage, regular compliance inspections and harsher penalties for selling tobacco products to minors.
The chamber maintained that such targeted interventions would achieve youth protection goals without causing major economic disruption to compliant traders and investors.
KNCCI said it remains ready to participate in further consultations and oral hearings as Parliament reviews the proposed law.
Kenya Association of Manufacturers (KAM) has also pushed back against sections of the Tobacco Control (Amendment) Bill, 2024 currently before the Senate, citing risks of a higher cost of doing business, a conflicting regulatory framework, and growth in illicit trade.
RETRAK in its earlier submission to the National Assembly Committee on Health, urged lawmakers to reconsider sections of the proposed Bill that seek to introduce a tobacco-specific plastics ban and prohibit flavours in nicotine products.
The association argued that Kenya already has sufficient environmental laws under the National Environment Management Authority and the Environmental Management and Coordination Act (EMCA) to regulate plastic waste through Extended Producer Responsibility (EPR) frameworks, plastic-packaging licensing, and take-back schemes.
According to RETRAK, NEMA has publicly maintained that enforcement should be driven through EPR registration and compliance measures targeting all sectors equally, rather than singling out tobacco products.
The lobby group warned that introducing a tobacco-specific plastics ban could create uncertainty for manufacturers and retailers while exposing the legislation to constitutional challenges over proportionality and rationality.
“We therefore propose that Section 19 of the Bill, introducing the proposed new Section 21B, be deleted in its entirety as there are robust and sufficient laws and regulations in place,” CEO Wambui Mbarire says in the submission.
The association has also opposed provisions under Section 12 of the Bill that seek to ban flavours in tobacco and nicotine products.
While supporting measures aimed at protecting minors from tobacco use, RETRAK argued that Kenya’s larger challenge is the growing trade in illicit and untaxed tobacco products, which it said now account for more than half of products sold on the market.
The association said such products are sold without quality controls, evade taxes, and are often distributed by traders who disregard laws restricting sales to minors.
“We therefore call upon the National Assembly to consider amendments that enable responsible adult access to these products from legitimate business/suppliers, in the interest of the consumer and their safety.”
