Kenyan retailers are raising concerns over proposed amendments to the Tobacco Control Act, warning that additional licensing requirements and compliance costs could disrupt legitimate businesses while fueling illicit trade.
The concerns come amid what businesses describe as an unprecedented surge in laws and regulations over the past year, which they say has increased operational costs and complicated compliance for the retail sector.
Growing Regulatory Pressure on Retailers
Retailers argue that while regulation is necessary, the cumulative impact of multiple laws has been disruptive, particularly for small and medium-sized enterprises.
At the centre of the debate is the proposed amendment to the Tobacco Control Act of 2007, which seeks to address changes in the nicotine market, including the emergence of reduced-risk products such as vapes and nicotine pouches.
Formal retailers say these newer nicotine products have become a legitimate and growing product line. However, they warn that the draft amendments introduce additional licensing requirements, higher compliance costs, and new layers of bureaucracy that could disproportionately burden retailers.
“If implemented as currently drafted, the Bill risks pushing compliant businesses out of the market altogether,” industry players caution.
Concerns Over Illicit Trade
Retailers agree with lawmakers on the need to protect children from accessing nicotine products, describing it as non-negotiable. However, they argue that overly complex and costly compliance requirements could drive the rapid growth of illicit markets.
According to retailers, when regulation becomes excessively restrictive, legitimate businesses struggle while illegal traders thrive. This could lead to declining tax revenues, weakened compliance, and products being pushed underground, where there are no age checks or consumer safeguards.
Illicit trade, they note, has historically been linked to organized crime and, in some instances, the financing of terrorism. By contrast, formal retailers have strong incentives to comply with the law and enforce age restrictions.
They argue that removing products from regulated retail environments may inadvertently increase risks to minors rather than reduce them.
Innovation and Harm Reduction Debate
Another key concern is that the proposed amendments are not innovation-neutral. Retailers say reduced-risk and novel nicotine products are being treated the same as combustible cigarettes, despite growing global evidence suggesting different risk profiles.
They describe this as a missed opportunity for harm reduction, arguing that well-regulated alternative products could provide adult smokers with viable options and potentially contribute to lowering smoking rates.
Retailers are calling for evidence-based regulation that differentiates between product categories while maintaining strict safeguards for minors.
Licensing and County-Level Levies
The proposed licensing provisions have also drawn criticism. The amendments would require manufacturers and importers to obtain approval from the Cabinet Secretary for Health before bringing products to market.
Retailers say this would increase red tape, introduce delays, and create uncertainty in supply chains.
Additionally, the Bill would empower county governments to impose separate licenses and levies for tobacco and nicotine products. Retailers argue this could duplicate existing regulatory frameworks and significantly raise operating costs.
Small shops, informal traders, and low-margin businesses are expected to bear the greatest burden. Even large supermarkets would be required to obtain additional county-level licenses solely for tobacco and nicotine products.
Advertising and Online Sales Restrictions
The Bill also proposes broad restrictions on advertising and a blanket ban on online sales of tobacco and nicotine products.
Retailers say the approach fails to distinguish between active marketing and simple online product listings that indicate availability.
They have expressed willingness to work with the government to implement safeguards such as robust age-verification systems, mystery shopping, and compliance monitoring to ensure digital channels do not enable underage access.
Call for Balanced Regulation
Retailers maintain that Kenya does not have to choose between protecting public health and supporting legitimate businesses.
They are calling for balanced, evidence-based regulation that protects minors, supports compliant retailers, encourages harm reduction, and preserves tax revenues without driving consumers into illicit markets.
Industry players say they are ready to engage constructively with lawmakers and the Ministry of Health to refine the Bill, warning that the cost of missteps could be borne by businesses, consumers, and the broader economy.