KNCCI warns Tobacco Bill could hurt businesses, fuel illicit trade

In a submission to the National Assembly, the Chamber said it supports public health objectives but cautioned that the Bill, in its current form, introduces what it described as “overly restrictive and duplicative” regulatory requirements that could weigh heavily on businesses, particularly small and medium enterprises.

One of the central concerns is the proposed dual licensing system, which would require tobacco traders to secure approvals from both county governments and the Ministry of Health. KNCCI warned that “regulating the same commercial activity through parallel approval regimes risks duplication, increased compliance costs, and fragmented enforcement across multiple authorities,” arguing that the structure could create inefficiencies and inconsistent enforcement across the country.

The Chamber also raised alarm over a proposed 100-metre sales restriction around premises serving minors, saying it could have unintended consequences in densely populated urban centres.

KNCCI cautioned that “such an outcome would impose significant economic disruption on legitimate businesses while leaving consumer demand intact, thereby increasing the incentive for illicit supply and informal trade.”

On regulatory scope, the business lobby criticised the inclusion of single-use plastics provisions in the Bill, noting that environmental controls are already covered under existing legislation. It argued that introducing similar restrictions within a health law risks regulatory overlap and weakens enforcement clarity.

KNCCI further said the Bill fails to distinguish between different categories of nicotine products, arguing that it does not adequately reflect what it described as the “risk continuum” between combustible tobacco and lower-risk alternatives such as nicotine pouches and electronic nicotine delivery systems. The Chamber warned that collapsing these categories into a single regulatory framework could undermine harm-reduction efforts.

The group also flagged concerns over the product approval process, particularly the absence of a clear enforcement mechanism for the 90-day review timeline. It warned that without stronger safeguards, applications could face indefinite delays, creating uncertainty for investors and operators in the sector.

Additionally, KNCCI criticised the proposed blanket ban on online sales of tobacco and nicotine products, arguing that it could push commerce into unregulated digital spaces that are harder to monitor and lack proper age-verification systems.

While reaffirming its support for efforts to prevent underage access to tobacco products, the Chamber urged lawmakers to adopt a more targeted, risk-based regulatory approach. It called for reforms that prioritise enforcement against sales to minors while avoiding overlapping approvals and broad restrictions that could stifle legitimate economic activity.

The National Assembly Committee on Health is expected to consider the Chamber’s submissions as deliberations on the Bill continue.