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KNCCI warns Tobacco Bill could hurt businesses, fuel illicit trade

KNCCI warns Tobacco Bill could hurt businesses, fuel illicit trade
The Kenya National Chamber of Commerce and Industry (KNCCI) has raised alarm over the proposed Tobacco Control (Amendment) Bill, 2024

The Kenya National Chamber of Commerce and Industry (KNCCI) has raised alarm over the proposed Tobacco Control (Amendment) Bill, 2024, saying certain clauses could impact positively on legitimate businesses, increase their cost of operation, and foster the illegal trade of tobacco in Kenya.

In a submission to Parliament, the business lobby said it supported efforts to protect public health and reduce smoking among young people. But KNCCI said the proposed law will come with strict regulations that could pose challenges to traders, manufacturers and small businesses across the country.

One of the biggest concerns is the proposed dual license system. The Bill also requires tobacco traders to obtain clearances from the county governments and the Ministry of Health before they can operate. This could lead to increased bureaucracy, slow business operations, and confusion in enforcement, KNCCI warned.

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The Chamber also rejected the proposal to ban the sale of tobacco within 100 metres of schools and places where minors congregate. It said many legal shops could have their business licences revoked even though they have been operating legally for years in busy urban areas.

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Kenya is already grappling with an increasing problem of illicit cigarette trade that deprives the government of tax revenue while exposing consumers to unregulated products, the World Health Organization said. Industry estimates suggest that the share of illegal tobacco products in East Africa’s cigarette sales is considerable.

KNCCI criticised the proposed blanket ban on online sales of tobacco and nicotine products
KNCCI criticised the proposed blanket ban on online sales of tobacco and nicotine products

The KNCCI also challenged proposed restrictions on online sales and nicotine alternatives such as vaping products and nicotine pouches. The Chamber said that treating all nicotine products the same ignores the global harm reduction conversations happening in countries like the UK and Sweden, where authorities treat lower-risk alternatives differently than traditional cigarettes.

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Kenya has some of the strictest tobacco laws in the world under the Tobacco Control Act of 2007, including graphic health warnings, restrictions on smoking, and bans on tobacco advertising. Parliament’s Health Committee is set to review KNCCI’s concerns as debate on the amendment Bill continues.

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