Traders in Mombasa have raised alarm over the Tobacco Control (Amendment) Bill, 2024, warning that its passage in its current form could significantly expand illicit trade, cripple legitimate businesses and erode government tax revenue.

The bill, currently before the Senate and sponsored by Senator Catherine Mumma, seeks to introduce strict controls on modern nicotine products, including a ban on flavoured nicotine products, restrictions on online sales and a prohibition of mobile vending.

Speaking on behalf of traders, Faith Mwende said the proposed measures risk driving consumers to the black market rather than reducing harm.

“History has shown that bans do not eliminate demand. They simply push trade underground, empowering illegal networks while destroying compliant businesses,” Mwende said.

The traders argue that heavily restrictive regulations would fuel illegal trade through black-market exploitation, undermine efforts to curb illicit products, and place an unbearable burden on small and medium enterprises already struggling with high operational costs.

They also warn that the bill introduces what they term double taxation and excessive compliance requirements, which could force many licensed traders out of business, ultimately leading to a loss of government revenue.

“When legal businesses collapse, the government loses taxes, jobs are lost, and consumers are exposed to unregulated and potentially dangerous products,” Mwende added.

The traders are now calling for the suspension of the bill to allow for broader and more inclusive consultations with stakeholders. 

They are urging senators to amend what they describe as punitive clauses to ensure the law targets illegal trade without destroying legitimate enterprises.

They insist that balanced regulation, rather than outright bans, is key to protecting public health while safeguarding livelihoods and national revenue.