Tobacco Bill: Traders Warn of Rising Costs and Illicit Trade

Traders affiliated with the Pubs, Entertainment and Restaurants Association of Kenya (PERAK) have urged the National Assembly to hold nationwide public consultations on the Tobacco Control (Amendment) Bill, 2024. The businesses claim that the current process has not sufficiently captured the perspectives of affected traders. They presented petitions on behalf of Kenyans from various constituencies, requesting physical public participation forums throughout the country before the Bill advances further.

PERAK argues that consultations beyond Nairobi would enable businesses, workers, consumers, and other stakeholders to express their opinions on provisions that may significantly impact their operations. The Bill, proposed by Senator Catherine Mumma, aims to amend the Tobacco Control Act by establishing a regulatory framework for emerging nicotine and tobacco products, including e-cigarettes and oral nicotine pouches.

The bill is currently under review by the National Assembly’s Health Committee, following its passage by the Senate. PERAK National Chairman Michael Muthami emphasized that businesses are not opposed to regulation but advocate for a more inclusive approach when reviewing the proposed legislation. Muthami stated, “We support evidence-based policies that protect public health while also considering the realities faced by businesses, workers, traders, and consumers.”

Controversial aspects of the bill include restrictions on flavors in tobacco and nicotine products, which traders worry could push consumers towards illicit alternatives and harm legitimate businesses. Additionally, traders have expressed concerns over a requirement that businesses dealing in tobacco products must obtain specific county licenses, arguing that this could increase their regulatory burden and constitute double taxation for firms that already hold county permits.

Muthami requested the National Assembly’s Health Committee to avoid repeating what he described as shortcomings in the Senate’s consultation process. The Tobacco Control (Amendment) Bill, 2024 represents the first major proposed revision of Kenya’s Tobacco Control Act since its enactment in 2007.