Kenya’s efforts to tighten tobacco regulations are facing fresh resistance from businesses, with traders warning that some of the proposed measures could end up strengthening the illegal cigarette market instead of protecting public health.
As Parliament reviews the Tobacco Control (Amendment) Bill, concern is growing among retailers, manufacturers and business associations that certain provisions, particularly those targeting emerging nicotine products, may produce unintended economic consequences if they are introduced without broader consultations and stronger enforcement against smuggling.
The latest objections have come from members of the Bars, Hotel and Liquor Traders Association of Kenya (BAHLITA), whose members operate businesses in counties including Uasin Gishu and Nakuru.
The traders argue that Parliament should suspend consideration of the Bill until nationwide public participation is conducted, saying discussions held mainly in Nairobi have locked out thousands of people whose livelihoods depend on the tobacco value chain.
Their concerns go beyond the legislative process. According to the association, restricting legal nicotine products without first addressing the country’s thriving illicit tobacco market could simply hand illegal traders a larger share of the market while compliant businesses struggle to survive.
BAHLITA Secretary General Boniface Gachoka said the Constitution requires meaningful public participation before any law is passed, insisting that those directly affected deserve an opportunity to present their views.
“When traders, the very people whose businesses will be affected by this law, are excluded from the process, that is an affront to a right guaranteed to every Kenyan under the Constitution,” he said.
The proposed amendments seek to introduce tougher controls on tobacco and nicotine products, including a ban on flavoured nicotine products. While public health advocates argue such measures are necessary to discourage uptake, particularly among young people, traders believe the approach does not reflect the realities of Kenya’s market.
According to business groups, consumers who can no longer access regulated products often turn to cheaper alternatives supplied through informal networks. Unlike licensed products, illicit cigarettes and nicotine products are rarely subjected to quality checks, generate no tax revenue and are widely available despite existing laws.
The issue of illicit trade has become one of the biggest concerns within Kenya’s tobacco industry. Industry estimates indicate that illegal cigarettes now account for nearly half of all cigarettes sold in the country, depriving the government of billions of shillings in excise and VAT collections every year.
Much of the contraband is believed to enter Kenya through porous borders, particularly from neighbouring Uganda, where counterfeit products are repackaged before finding their way into local markets.
British American Tobacco Kenya has also urged lawmakers to reconsider sections of the Bill. While supporting regulation of alternative nicotine products, the company says different products should be governed according to scientific evidence and their individual risk profiles instead of being subjected to identical restrictions.
The company has argued that nicotine pouches, heated tobacco products and electronic nicotine delivery systems should be treated differently from combustible cigarettes because they present different levels of risk. BAT also maintains that expanding the illegal market would undermine both public health objectives and government revenue collection.
Other private sector organisations have raised similar reservations. The Kenya National Chamber of Commerce and Industry, the Retail Trade Association of Kenya and the Kenya Association of Manufacturers say the proposed law could increase compliance costs for businesses while creating overlapping regulatory requirements.
Some have also questioned proposals on tobacco-related plastic waste, arguing that existing Extended Producer Responsibility regulations already provide a legal framework for managing such waste.
The tobacco industry remains a significant contributor to Kenya’s economy, supporting more than 100,000 jobs across farming, manufacturing, transport, wholesale distribution and retail.
Businesses fear that abrupt policy changes could discourage future investment at a time when regional competition for manufacturing capital is intensifying.
For Parliament, the challenge now extends beyond balancing public health and commercial interests. Lawmakers must also determine whether the current consultation process has adequately captured the views of businesses outside Nairobi.
As debate over the Tobacco Control (Amendment) Bill intensifies, traders insist that wider public participation will not only strengthen the legislation but also help avoid unintended consequences that could fuel illicit trade and erode government revenue.
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