Why the Tobacco Amendment Bill is a Heavy Burden for Traders

The Tobacco Control Amendment Bill, 2024, is raising concerns among traders and small business owners due to the multiple compliance requirements and heavy penalties it introduces.

While the Bill is intended to strengthen regulation of tobacco and nicotine products, including vapes and nicotine pouches, traders argue that it could place a financial burden on businesses, particularly small retailers and duka owners.

According to the traders, one of the biggest concerns is the introduction of several approval and licensing requirements.

Under the proposed law, a trader may be required to hold a normal business permit, obtain a county tobacco licence, and register with the Ministry of Health before selling or distributing tobacco products.

Tobacco Amendment Bill: Why Traders Say It Is a Heavy Burden

Traders further argued that the county licence must be tied to a specific business location and displayed publicly, while Ministry registration is mandatory for anyone involved in the manufacture, importation, sale, or distribution of tobacco products.

Therefore, for many small businesses, complying with multiple processes managed by different levels of government could prove difficult and costly.

They highlighted that the bill also introduces steep penalties for non-compliance.

Failure to register with the Ministry of Health could attract a fine of up to Ksh 3 million, imprisonment for up to three years, or both.

Traders noted that operating without a county licence could face fines of up to Ksh 100,000 or a jail term of up to 12 months, adding that such penalties are excessive for small traders who may make administrative errors while trying to comply with complex regulations.

They added that many duka owners operate on thin profit margins and may not have the legal or administrative capacity needed to navigate multiple licensing and registration requirements.

Also Read: Duka Owners Risk Ksh 3 Million Fine Under Tobacco Amendment Bill

Traders’ Highlight on Different Rules Across Counties

Business owners also argued that the Bill gives county assemblies powers to develop additional tobacco licensing regulations.

Counties may introduce different licence categories, application procedures, and minimum distance requirements from schools and other institutions.

Also Read: Kenyans to Feel the Impact: Major Tax Changes Proposed on Phones, Fuel, and Tobacco

This could result in varying rules from one county to another, making compliance more challenging for distributors and traders operating in multiple locations.

Stakeholders say the combination of multiple licences, separate approvals, and severe penalties could create uncertainty for traders.