BAT Kenya warns Tobacco Bill could cost government Ksh.12B annually

In a memorandum submitted to the National Assembly, BAT Kenya Managing Director Crispin Achola cautioned that the Bill, if passed in its current form, could fuel the growth of the illicit cigarette trade, which the company says already accounts for about 45 per cent of Kenya’s total cigarette market.

The company singled out the proposed blanket ban on flavours for all tobacco and nicotine products under Section 14J(1)(f) as one of its key concerns, describing the proposal as excessive and inconsistent with global regulatory trends.

BAT Kenya argued that countries such as United Kingdom, New Zealand and Sweden have adopted progressive regulatory frameworks where adult-oriented flavours are used as part of harm reduction strategies to help smokers transition to lower-risk alternatives.

According to the company, banning flavours entirely would likely push consumers towards unregulated and non-compliant products supplied through illegal channels.

The memorandum also faulted the Bill for classifying smokeless nicotine products, including electronic cigarettes and oral nicotine pouches, as tobacco products. BAT Kenya argued that many of these products contain synthetic or plant-based nicotine rather than tobacco and should therefore be regulated differently.

The company called for a science-based regulatory framework that recognises the lower-risk profile of non-combustible nicotine products. In support of its position, BAT Kenya cited findings by the Royal College of Physicians, which state that public health outcomes could be significantly improved if smokers switched to smoke-free nicotine alternatives.

BAT Kenya further raised concerns over proposed dual licensing and registration requirements under Sections 20A and 21A, saying the measures would create unnecessary administrative burdens and additional costs for traders and retailers already operating under existing licensing frameworks.

The company warned that the duplication could disproportionately affect small-scale retailers and disrupt businesses across the tobacco supply chain.

It also described the proposed 100-metre sales radius restriction under Section 15(5A) as impractical and difficult to enforce, arguing that similar restrictions in other sectors have faced implementation challenges.

On environmental and packaging provisions, BAT Kenya said the proposed ban on single-use plastics under Section 21B overlooks existing Extended Producer Responsibility frameworks already being implemented by manufacturers.

The company also objected to proposals seeking to expand graphic health warnings and grant broader ministerial powers on plain packaging under Section 21(2A), noting that the industry is still adjusting to regulatory changes introduced in June 2025.

BAT Kenya additionally questioned the level of public participation undertaken during the drafting and passage of the Bill through the Senate, arguing that the process did not meet the constitutional threshold for adequate stakeholder consultation.

“We remain committed to supporting the government’s public health objectives,” said Achola. “However, regulation must be balanced and based on the best available science. The current proposals risk destroying a legitimate value chain and creating a fertile ground for the black market to thrive, ultimately undermining the very public health goals they seek to achieve.”