Mombasa traders have warned that the proposed Tobacco Control (Amendment) Bill, 2024, could significantly increase illicit trade in nicotine products, threaten legitimate businesses and cause substantial revenue loss to the government.

Speaking to the press in Mombasa, the traders described illicit trade in excisable goods as a growing crisis that already undermines compliant enterprises and deprives the National Treasury of billions of shillings in taxes.

Faith Mwende, a Mombasa business owner, said illicit trade in excisable products has expanded rapidly. She referred to recent Kenya Revenue Authority assessments indicating that more than 50 per cent of excisable goods in the Kenyan market are illicit or non-compliant.

Mwende noted that the Bill, sponsored by ODM nominated Senator Catherine Muyeka Mumma, proposes measures that include a ban on flavoured products such as vapes and nicotine pouches to protect minors from nicotine use.

While recognising the goal of safeguarding children, Mwende argued that the flavour ban could produce unintended effects. She pointed out that flavoured nicotine products are priced well beyond most minors’ reach, with nicotine pouches retailing at around Ksh500. She explained that the measure would limit adult consumer choice without evidence, showing flavours harm adults, who form the majority of users.

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

Partrick Kabundu, chairman of the Coast Bar Owners Association, cautioned that banning such products would create a market vacuum that will be filled by illicit operators. He explained that past experience in restricted sectors shows legitimate goods being replaced by cheaper, unregulated alternatives from the black market.

“This would lead to legitimate businesses losing revenue as consumers turn to cheaper, unregulated products that have not paid taxes or complied with health and safety requirements,” Kabundu said.

In the long term, he warned, businesses could close, government revenue would drop sharply and minors would still access nicotine products through illegal channels.

With the Senate set to resume sittings soon after recess the traders urged lawmakers to reconsider the amendments. They called for rejection of the flavour ban provision, arguing it would boost illicit trade, erode livelihoods, cut revenue and expose consumers to unsafe products.

The traders highlighted that existing legislation already addresses underage access concerns. Section 15 of the Tobacco Control Act, 2007 prohibits sale of tobacco products to persons under 18 years, offering a framework to protect children without restricting adult options.

They recommended stronger enforcement of current laws over new measures they view as overreach into adult choices.

• A Tell Media / KNA report / By Sitati Reagan