Tobacco Bill Could Trigger Illicit Trade Boom, Traders Warn MPs

BAHLITA representative led by the secretary general, Bonface Gachoka(center) addressing the media today.

A proposed overhaul of Kenya’s tobacco control laws could have the opposite effect of what Parliament intends, with traders warning that additional licences and compliance requirements could drive legitimate businesses underground and fuel the illicit market.

The Bar, Hotels and Restaurants Association of Kenya (BAHLITA) has now turned to the National Assembly, demanding a fresh and wider public participation process before MPs consider the Tobacco Control Amendment Bill, 2024.

The association says it represents about 54,000 traders across all 47 counties and argues that its members—who sell tobacco products, pay licences and comply with existing regulations—cannot be excluded from decisions that will directly affect their businesses.

BAHLITA Secretary-General Boniface Gachoka accused some interests of attempting to sideline key stakeholders from the parliamentary process, warning that laws made without the input of affected traders risk becoming difficult to enforce.

“Public participation is not a favour. It is a constitutional right,” Gachoka said.

The traders insist they are not opposed to tobacco-control measures, including efforts to prevent young people from accessing tobacco products.

Instead, they want Parliament to remove what they consider unnecessary layers of regulation and concentrate on the real threat—the illicit market.

Gachoka said traders were particularly concerned about proposals that could introduce additional licensing and registration requirements for businesses already regulated by national and county authorities.

“More licences do not automatically translate into more compliance. In many cases, they simply create more bureaucracy,” he said.

According to the association, most retailers are small businesses that could struggle to absorb additional licence fees, approvals and administrative costs.

The group warned that rather than improving compliance, excessive regulation could push some businesses into informality and give illicit operators an advantage over legitimate traders.

The traders want the national and county governments to establish a coordinated regulatory system with integrated databases, mutual recognition of licences, seamless information sharing and a single-window compliance system.

They also want enforcement agencies to focus their efforts on illegal tobacco products instead of imposing additional paperwork on compliant businesses.

“The solution is not more paperwork for legitimate business people. The solution is smarter enforcement, better intelligence sharing and targeted action against illegal operators,” Gachoka said.

The association has submitted **19 petitions from different constituencies** to Parliament, which it intends to present to the Clerk of the National Assembly, parliamentary committees and MPs.

The petitions are part of a campaign to ensure traders’ views are incorporated before the Bill proceeds further.

The association also criticised the manner in which public participation was previously conducted at the Senate, saying a session held at Bunge Towers was inaccessible to many members of the public.

It wants the National Assembly to take the process beyond Nairobi and conduct hearings in counties and sub-counties.

Gachoka said traders in areas including Mombasa, Eldoret and Kisumu also have a right to be heard.

The association warned that ignoring traders could worsen the very problem the Bill seeks to address.

Gachoka claimed that about **40 per cent of cigarettes and tobacco products in the Kenyan market are illicit**, while putting illicit liquor at 60 per cent.

He cited South Africa as a warning, arguing that restrictions introduced during the Covid-19 pandemic contributed to the growth of an illicit tobacco market.

The traders said they have no intention of going to court if Parliament listens to their concerns and incorporates their proposals.

Instead, they want to work with MPs to strengthen the Bill, particularly in tackling illicit trade, protecting government revenue and improving enforcement.

“We do not want this Bill to go through the way it went in the Senate,” Gachoka said.

He urged MPs to listen to traders across the country before making decisions that could have far-reaching consequences for legitimate businesses and the fight against illicit tobacco.