Mombasa traders reject proposed tobacco law, say it will fuel illicit trade

Coast Bar Owners Association Chair Patrick Kabundu speaking during a press conference in Mombasa./JOHN CHESOLI

Traders in Mombasa have opposed the Tobacco Control (Amendment) Bill, 2024, warning that the proposed changes could fuel illicit trade, hurt legitimate businesses and reduce government revenue.

They told a press conference in Mombasa that illicit trade has grown into a crisis that now threatens compliant businesses.

They warned that the trend could deny the government billions of shillings in taxes.

Faith Mwende, a business owner in Mombasa, said illicit trade in excisable goods has grown exponentially.

She cited acknowledgements by the Kenya Revenue Authority that more than 50 per cent of excisable goods in the Kenyan market are illicit or non-compliant.

She said affected products include soft drinks, bottled water, beauty products, beer, cigarettes and perfumes.

Mwende said the Tobacco Control (Amendment) Bill of 2024, sponsored by ODM nominated Senator Catherine Mumma, proposes several changes, including a ban on flavours in products such as vapes and nicotine pouches.

The bill aims to curb nicotine use by minors.

While acknowledging the need to protect children, Mwende said the proposal is misguided and could have unintended consequences.

She said flavoured nicotine products are already priced beyond the reach of most minors, with nicotine pouches retailing at about Sh500.

She argues that the proposal infringes on the rights of adult consumers, saying no evidence has been presented to show that flavours harm adults, who make up the majority of users.

“We ask the Senate to resist the temptation to become a moral police and instead focus on policies that protect livelihoods, revenue and public health without driving more trade into the black market,” she said.

Partrick Kabundu, the Coast Bar Owners Association chairman, warned that banning products would create a vacuum in the legal market, allowing illicit traders to step in.

He said experience from other sectors shows that when legitimate products are banned or heavily restricted, illegal traders quickly meet demand through the black market.

Kabundu said the proposed law will make legitimate businesses lose revenue as consumers turn to cheaper, unregulated products that do not meet health and safety standards.

In the long term, he warned, businesses would shut down, government revenue would fall, and minors would still access nicotine products through illegal channels.

As the Senate prepares to resume sittings next week after a long recess, the traders urged lawmakers to reconsider the proposed amendments.

They said existing laws already address concerns around minors.

They cited Section 15 of the Tobacco Control Act of 2007, which prohibits the sale of tobacco products to persons under 18.

They urged the Senate to strengthen enforcement of existing laws instead of introducing measures they say amount to legislating morality.