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OP-ED |Red Tape and Rising Costs: Why the Tobacco Bill Could Hurt Retailers and Consumers

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Why the Tobacco Bill Could Hurt Retailers and Consumers

Over the past year, Kenya has seen a wave of new laws and regulations. Many of them are meant to solve real problems, but the combined impact on businesses especially retailers is becoming difficult to ignore.

There is a growing tendency to assume that tighter regulation is always the best solution. Yet in an economy that is rapidly changing due to technology and innovation, relying on heavy, outdated controls can end up causing more harm than progress.

The Tobacco Control Act was first introduced in 2007, and amendments are now being proposed to respond to changes in the nicotine market. For formal retailers, newer products such as vapes and nicotine pouches have become a legitimate and expanding category.

However, the proposed changes introduce additional licensing requirements, higher compliance costs, and more bureaucracy that could place an unfair burden on retailers. If implemented in its current form, the Bill risks pushing even compliant businesses out of the market.

Retailers agree with lawmakers on one key point: protecting children from accessing nicotine products is non-negotiable. But the Bill does not adequately address a serious concern the growth of illicit markets when compliance becomes too complex or expensive.

History shows that when regulations become overly restrictive, legal businesses struggle while illegal traders flourish. Government loses tax revenue, accountability disappears, and products move underground where there are no age checks or consumer protections.

Illicit trade is not just a business issue. It has long been linked to organised crime and, in some cases, the financing of terrorism. Formal retailers, on the other hand, have strong incentives to follow the law and enforce age restrictions. Removing products from regulated retail spaces does not protect minors it may actually expose them to greater risk.

Another major concern is that the Bill does not recognise differences between traditional cigarettes and reduced-risk nicotine alternatives. Treating all products the same ignores growing global evidence that risk levels vary.

This is a missed opportunity for harm reduction. With smart regulation, these alternatives could help adult smokers transition away from combustible tobacco and potentially reduce smoking rates in the country.

Retailers are also worried about the proposed licensing structure, which would require manufacturers and importers to seek approval from the Cabinet Secretary for Health. This adds red tape, increases costs, and creates uncertainty around timelines.

At the same time, county governments would have the power to introduce additional licenses and levies, effectively duplicating existing frameworks. Small shops and informal traders would feel the biggest impact, though even large supermarkets would face new county-level licensing requirements for tobacco and nicotine products.

The Bill also proposes broad advertising restrictions and a blanket ban on online sales. This approach fails to separate aggressive marketing from simple product listings that only inform consumers about availability.

Retailers have indicated they are willing to work with the government to introduce safeguards such as strong age-verification systems, compliance checks, and monitoring to ensure digital platforms do not allow underage access.

Kenya does not need to choose between public health and legitimate business. What is needed is balanced, evidence-based regulation that protects minors, supports compliant retailers, encourages harm-reduction, and safeguards tax revenue without driving consumers toward illegal markets.

Retailers remain ready to engage constructively with lawmakers and the Ministry of Health to find workable solutions. If the policy gets it wrong, the consequences will not only affect businesses, but also consumers, communities, and the broader economy.

Read Also: OP-ED | Policy Capture at COP11: What It Means for Africa’s Health Leadership

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