New Tobacco Bill Introduces Jail Terms and Multi-Million-Shilling Fines
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Businesses that engage in the sale or distribution of tobacco and nicotine may be subject to hefty fines and increased regulatory requirements under the proposed Tobacco Control (Amendment) Bill, 2024.
The proposed law is aimed at tightening controls for production, sale, advertisement, distribution and consumption of tobacco products, which include cigarettes, nicotine pouches and nicotine e-delivery systems.
Despite claims that the new law will enhance public health care and safety, some business owners have expressed concerns that the proposed law will increase their compliance requirements as they are already grappling with rising expenses.
Under the proposed law, the sellers and retailers involved in the trading of tobacco products will be required to seek approval from the county governments and register with the Ministry of Health.
Non-compliance can result in hefty fines and jail terms.
Under the Bill, any individual who engages in the manufacturing, importing, selling, or distribution of tobacco products without being registered with the designated Ministry of Health could be charged up to a fine of Ksh 3 million, or imprisonment for up to three years, or both.
The proposed Bill was approved in the Senate on March 3, 2026, and awaits approval in the National Assembly.
It brings in new regulations for the sale of cigarettes, nicotine pouches, e-cigarettes, and other forms of emerging nicotine products.
Key Fines Tobacco Traders Could Face
| Issue | Proposed Requirement | Penalty |
| Operating without county licence | Any person dealing in tobacco products must obtain a licence from the relevant county executive committee member and operate from approved fixed premises. | Fine of up to Ksh 100,000, imprisonment for up to 12 months, or both. |
| Selling without Ministry of Health registration | Manufacturers, importers, sellers and distributors must be registered by the Ministry responsible for Health. | Fine of up to Ksh 3 million, imprisonment for up to 3 years, or both. |
| Dealing in unapproved products | Traders must not manufacture, sell, distribute, store or import tobacco products not approved by the Cabinet Secretary. | Fine of up to Ksh 1 million or 5% of gross turnover, whichever is higher, or imprisonment for up to 2 years. |
| Selling tobacco online | Online sale or offers for sale of tobacco products, nicotine pouches and electronic nicotine delivery systems prohibited. | Fine of up to Ksh 500,000, imprisonment for up to 3 years, or both. |
| Hawking or mobile vending | Tobacco products cannot be sold through hawking, vehicles or mobile vending. | Fine of up to Ksh 50,000, imprisonment for up to 6 months, or both. |
| Products appealing to minors | Manufacturing or selling tobacco products, packaging or designs resembling sweets, snacks, toys or cartoon characters prohibited. | Fine of up to Ksh 500,000, imprisonment for up to 3 years, or both. |
Also Read: Duka Owners Risk Ksh 3 Million Fine Under Tobacco Amendment Bill
Hospitality Sector Warns of Growing Regulatory Pressure
Hospitality sector players have warned that the proposed rules come at a time when businesses are already facing multiple licensing requirements, taxes and rising costs.
Michael Muthami, Chairperson of the Pubs Entertainment and Restaurants’ Association (PERAK), said businesses are increasingly struggling under what he described as regulatory creep.
“On any given morning, before the first customer walks through the door, a restaurant owner is already making difficult calculations. How much did electricity cost this month? Can the business absorb another increase in supplier prices?” Muthami said.
He added that the hospitality industry contributes approximately Ksh 1.2 trillion to the economy and supports about 1.7 million jobs, meaning any additional pressure on businesses affects thousands of workers and suppliers.
Traders Raise Concerns Over Compliance Costs
Muthami said the proposed framework could create additional expenses for small businesses that are already operating under tight margins.
“Each requirement may appear reasonable in isolation. Collectively, however, they consume time, resources and capital that businesses could otherwise invest in expansion, hiring or service improvement,” he noted.
The Bill requires traders to comply with both county and national processes, including obtaining county authorisation and registration with the Ministry of Health.
For many small retailers, the additional approvals could mean more paperwork, higher operating costs and increased risk of penalties.
Restrictions on Online Sales and Places of Sale Strengthened
Under this law, there will be stringent measures regarding the manner and place where tobacco products may be sold.
For instance, online selling of tobacco products and nicotine pouches/e-cigarettes will be outlawed, with violators liable for a fine of Ksh 500,000, a jail term not exceeding three years, or both punishments.
Also Read: Kenyans to Feel the Impact: Major Tax Changes Proposed on Phones, Fuel and Tobacco
Tobacco products will also not be sold through hawking, the use of mobile vendors, and vehicles.
Traders must be based on licensed fixed premises.
Illicit Trade of Tobacco Goods Disputes Continue
Bodies representing business organizations have made arguments that cracking down on illegal sellers should be given more weight than enforcing rules against compliant businesses.
RETRAK, for one, is worried that certain actions will impact legal merchants without stopping the illicit trade of tobacco products.
However, public health bodies believe that regulation is needed.
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Why the Tobacco Amendment Bill is a Heavy Burden for Traders. Photo/ file
