Nairobi — The Kenya National Chamber of Commerce and Industry (KNCCI) has warned that the proposed amendments to Kenya's tobacco control laws, under the Tobacco Control (Amendment) Bill, 2024 could increase compliance costs for businesses, disrupt formal trade channels and worsen the country's growing illicit tobacco trade.
In a submission to the National Assembly Committee on Health, the business lobby said while it supports stronger safeguards against youth access to tobacco and nicotine products, several proposals in the Bill risk creating overlapping regulations and operational uncertainty for traders already grappling with multiple licensing regimes.
The concerns come at a time when Kenya is facing a surge in counterfeit and smuggled cigarette trade that authorities say is costing the government billions in lost taxes annually.
Recent industry estimates indicate illicit cigarettes accounted for nearly 47 percent of total cigarette consumption in Kenya in 2025, up from 37 percent a year earlier, translating into an estimated Sh12 billion in lost annual tax revenue.
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The Anti-Counterfeit Authority has also identified cigarettes among the most counterfeited products in the country, underscoring growing concern over illegal supply chains and unregulated tobacco distribution networks.
The Chamber cautioned that the proposed framework, which introduces additional licensing and registration requirements for tobacco dealers, could weigh heavily on micro, small and medium-sized enterprises operating within the formal economy.
"The Chamber's position is that regulating the same commercial activity through parallel approval regimes risks duplication, increased compliance cost, and fragmented enforcement across multiple authorities," KNCCI said.
"In practice, this can discourage formalization, distort competition in favor of non-compliant actors, and undermine the very public health objectives the Bill seeks to advance."
The lobby group argued that tobacco retailers are already subject to county licensing requirements, tax obligations and sector-specific regulations, making additional approval layers potentially burdensome for businesses operating across the value chain.
KNCCI warned that excessive regulation could unintentionally push smaller traders into informal channels at a time when authorities are struggling to contain illicit trade.
In January this year, the Kenya Revenue Authority intercepted more than 9.3 million contraband cigarette sticks valued at Sh281 million at the Port of Mombasa in a multi-agency operation involving the Anti-Counterfeit Authority and other enforcement agencies.
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The Chamber urged lawmakers to anchor retail oversight within existing county trade licensing structures, particularly the Unified Business Permit system, while limiting national licensing requirements to manufacturers and importers already covered under excise laws.
The business organization also opposed proposals contained in the Bill seeking to ban single-use plastics linked to tobacco and nicotine products, arguing that Kenya already has a sufficient environmental compliance framework through Extended Producer Responsibility (EPR) regulations.
According to KNCCI, introducing a plastics ban through the tobacco legislation could create supply chain disruptions and regulatory overlap with existing waste management laws.
Likewise, the chamber expressed concern over a proposal barring the sale of tobacco and nicotine products within a 100-metre radius of premises primarily serving persons under 18 years.
It argued that the restriction could disproportionately affect traders in densely populated urban centers where schools, residential areas and commercial establishments are closely integrated.
KNCCI said such restrictions may unintentionally push legitimate businesses out of formal trade networks while creating room for unregulated operators.
The submission comes as Parliament intensifies scrutiny of the Tobacco Control (Amendment) Bill, which seeks to tighten regulation of tobacco and nicotine products amid growing public health concerns over youth access and emerging nicotine alternatives.
