KAM Pushes Back Against Tobacco Bill Proposals, Warns of Rising Illicit Trade and Investor Uncertainty

The debate over Kenya’s proposed Tobacco Control (Amendment) Bill, Senate Bills No. 35 of 2024, is intensifying after the Kenya Association of Manufacturers (KAM) formally opposed several provisions in the Bill, warning that some of the proposed regulations could hurt legitimate businesses, fuel illicit trade, and create uncertainty for investors.

In a memorandum submitted to Parliament on April 24, 2026, KAM acknowledged the need to modernize Kenya’s tobacco laws to align with emerging technologies and changing market realities. However, the association argued that regulation must strike a balance between protecting public health and safeguarding economic investments and jobs.

KAM, which represents more than 1,100 members and over 65 percent of Kenya’s manufacturing value-added industries, noted that the tobacco subsector continues to contribute significantly to employment creation and government revenue.

At the center of the industry’s concerns is the proposal requiring tobacco and nicotine product dealers to obtain additional county government licenses on top of existing approvals from the Ministry of Health. According to KAM, the move would introduce unnecessary regulatory duplication, increase compliance costs, and complicate business operations for compliant enterprises.

The manufacturers’ lobby warned that layered licensing structures at both county and national levels could create inconsistent enforcement and administrative inefficiencies while unintentionally encouraging the growth of illicit trade.

KAM cited concerns already raised by the Kenya Revenue Authority, which has acknowledged that illicit and non-compliant excisable goods account for nearly half of products on Kenyan shelves. According to the association, overly restrictive laws risk driving consumers toward unregulated markets, hurting compliant taxpayers while empowering illegal operators who evade taxes and quality standards.

The association also opposed proposals seeking to ban single-use plastics in tobacco and nicotine products, arguing that Kenya already has robust environmental laws under the Environmental Management and Co-ordination Act (EMCA), as well as Extended Producer Responsibility (EPR) regulations.

KAM maintained that introducing sector-specific bans through tobacco legislation would create policy fragmentation and undermine existing environmental governance frameworks led by the National Environment Management Authority (NEMA). The association argued that Kenya has already adopted a progressive approach centered on producer responsibility, waste management systems, recycling obligations, and packaging redesign rather than outright bans.

Another contentious proposal is the planned ban on flavored tobacco and nicotine products. While KAM supported efforts to restrict products that appeal to minors, including candy-like and toy-themed products, it cautioned against a blanket prohibition on all flavors.

The association argued that illegal operators already dominate portions of the market with little enforcement oversight, and a total ban could push adult consumers toward unregulated supply chains instead of reducing consumption. KAM proposed that lawmakers only prohibit flavors specifically designed to attract underage users while preserving options intended for adult consumers.

KAM further objected to provisions empowering the Cabinet Secretary to introduce plain packaging requirements for tobacco and nicotine products. According to the industry body, plain packaging would make it harder for consumers and enforcement agencies to distinguish between legitimate and counterfeit products, thereby worsening illicit trade and weakening traceability systems.

The manufacturers’ association noted that the Ministry of Health had already gazetted new packaging rules in June 2025 following lengthy stakeholder consultations, with implementation expected during 2026. Frequent and unpredictable regulatory changes, it argued, could destabilize legitimate industry players and create loopholes for illegal traders.

Even as KAM pushed back against several provisions, it expressed support for stricter measures aimed at protecting minors, including tougher penalties for individuals selling tobacco and nicotine products to persons under 18 years.

The memorandum now places lawmakers at the center of a delicate balancing act between strengthening public health protections and maintaining a predictable investment climate for manufacturers. As Parliament reviews the Bill, the outcome could significantly shape the future of Kenya’s tobacco, manufacturing, environmental, and public health landscape.

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