The Anti-Counterfeit Authority (ACA) and the Kenya Revenue Authority are pushing for tighter controls on tobacco trade, drawing a clash with manufacturers who want a review of the proposed rules.
ACA supports the Tobacco Control (Amendment) Bill 2024, terming it ‘timely’ and a boost to the fight against counterfeits.
‘By regulating the production, importation and sale of electronic nicotine delivery systems through mandatory approvals, strict labelling and controlled sales channels, the Bill provides a robust framework that complements the Authority’s mandate to eliminate counterfeit goods from the Kenyan market,’ Robi King’a, the ACA executive director, says in a submission to Parliament.
‘The Authority is of the view that, with the enhancements proposed in these submissions-particularly the integration of the Section 141 approval register with ACA’s AIMS(Anti-Counterfeit Integrated Management System) platform and KRA’s EGMS, the express reference to the WHO FCTC (Framework Convention on Tobacco Control) Protocol, the introduction of a stand-alone counterfeit-tobacco offence, and cross-referencing of Section 34B of the Anti-Counterfeit Act, the Bill will deliver simultaneous gains in public health, revenue protection, intellectual property enforcement, and consumer safety’
KRA also supports the amendments, but its interest is largely on plugging regulatory and taxation gaps created by the emergence of new nicotine products that were not covered when the current Tobacco Control Act was enacted in 2007.
‘The Tobacco Control Bill, 2024 supports revenue administration and collection through the following proposals,’ KRA says in its submission to Health Departmental Committee.
One of the key changes backed by KRA is the expanded definition of a ‘tobacco product’ to include synthetic nicotine formulations, nicotine analogues, electronic nicotine delivery devices and the solutions or liquids used in such devices.
KRA says this expansion will ‘close the legal loophole for new nicotine products ( vapes, e-cigarettes and nicotine pouches) that were previously not in the Tobacco Control Act of 2007, ensuring comprehensive taxation of the products.’
The taxman also supports the Bill’s proposed product standards, saying clear packaging requirements for electronic nicotine delivery systems, e-cigarettes and nicotine pouches would improve coordination among agencies involved in approving products entering the country.
‘The law requires specific approvals for allowing entry of the product in the market,’ the Authority says. ‘KRA will align the requirements of an approval by the Cabinet Secretary, Ministry of Health, in the approval process of issuing it and excisable licences for manufacture and importation of tobacco products.’
KRA also backs the proposed tax and pricing framework, saying existing excise tax policies are broadly aligned with the Bill’s requirements for distinct tax regimes for electronic cigarettes based on form and nicotine concentration.
Manufacturers seek workable rules
The Kenya Association of Manufacturers (KAM) says it supports the review because the existing law predates new nicotine products and technologies.
The lobby, however, warns against regulations that are difficult to enforce or that create several overlapping compliance requirements. ‘Effective regulation should aim to reduce health risks, promote informed consumer decision-making, and ensure that regulatory measures are practical and enforceable,’ says KAM.
Additionally, KAM argues that excessively restrictive measures could contribute to illicit trade, which will undermine both public health objectives and government oversight.
Manufacturer BAT Kenya makes a similar argument, particularly over the proposed restrictions on flavours. BAT argues that excessive restrictions could drive some consumers of smokeless nicotine products toward illegal suppliers.
‘Excessively restricting the range of available flavours, through restriction of ingredients or outright banning additives which result in a characterising flavour, could also push smokeless product consumers into an illegal, unregulated market, encourage potentially dangerous home-mixing of flavours or motivate them to return to smoking,’ BAT says.
The company wants Parliament to distinguish between flavours and packaging designed to appeal to adults and those that could attract children.
‘Adult-targeted flavours should be available,’ BAT says, while proposing restrictions on descriptors and packaging designs that could appeal to underage consumers.
BAT’s broader argument is that electronic cigarettes and nicotine pouches should not automatically be regulated in the same manner as combustible tobacco.
It says the Bill ‘incorrectly classifies all smokeless tobacco and nicotine products as ‘tobacco products’ and aims to regulate them in the same manner as cigarettes.’
Licensing row
The proposed licensing regime also threatens to revive an earlier dispute over the division of regulatory responsibilities between national and county governments. The Bill requires dealers in tobacco and nicotine products to be licensed, which then raises concern among manufacturers and traders over the possibility of additional county-level requirements on top of national regulation. BAT says additional licensing requirements would increase costs and complexity, especially for small traders.
Similarly, KAM argues that businesses should not face overlapping licensing systems where similar information is already collected by other regulators. However, the concern is not entirely new. Manufacturers have previously raised complaints about the accumulation of licences, permits, fees and charges imposed by different levels of government. A KAM regulatory audit released in March 2026 found that some manufacturers face more than 50 licences, permits, fees across national and county agencies.
Standardised licence
However, ACA proposes a standardised national licence containing a unique number, the geographical coordinates of the premises, authorised product categories and a QR-verifiable link to a central register. Rather than removing licensing, its proposal would make licences easier for enforcement officers to verify.
ACA wants the register of approved manufacturers, importers and products to be machine-readable and connected to existing Government systems, including its Anti-Counterfeit Integrated Management System, KRA’s customs and excise platforms and the Kenya Trade Network Agency’s single-window system.
The proposed architecture would allow officials at ports, warehouses and retail outlets to establish whether a product is approved and whether it corresponds with the information held in government databases.
ACA proposes that products carry unique identifiers, country of manufacture, batch information and production dates, together with QR codes or equivalent authentication technology. The agency says this will support track-and-trace systems. The proposed system also extends to online trade. ACA wants digital platforms to remove listings for unapproved tobacco and nicotine products within 48 hours after notification.
Another regulatory layer
The Bill also contains provisions that have already generated concerns about regulatory duplication. It proposes restrictions on single-use plastics used in tobacco products and packaging. BAT and KAM oppose the provision, arguing that plastic waste is already covered by Kenya’s wider environmental regulatory framework. The manufacturers point to the Environmental Management and Co-ordination Act and subsidiary rules governing extended producer responsibility and plastic packaging.
Their argument is that creating a tobacco-specific environmental prohibition could produce two different compliance regimes for businesses dealing with similar packaging materials. KAM has described the proposed approach as a regulatory-coherence problem, arguing that businesses should not have to comply with overlapping requirements imposed under different statutes.
Despite the differences, the submissions converge on one major objective of preventing minors from accessing nicotine products. KAM supports stronger penalties for businesses that sell tobacco and nicotine products to people under 18. It also supports restrictions on products designed to resemble toys, sweets, candy, or other items likely to attract children. Equally, BAT supports preventing underage access but argues that enforcement should focus on age verification and responsible retailing.
Controlling online sales
ACA proposes stronger controls over online sales, where conventional physical age verification is more difficult. The proposed framework would also introduce technical requirements for end products. The Bill provides for refill containers of no more than 10 millilitres, cartridges or tanks of no more than two millilitres, and a nicotine concentration ceiling of 10 milligrammes.
BAT and KAM argue that excessive restrictions could make illegal products more attractive by increasing the price or reducing the availability of compliant products. ACA takes the opposite approach, arguing that stronger product identification and traceability will make it harder for illicit operators to move counterfeit products through the market.
Similarly, KRA says it sees product approval and standards as tools for ensuring that goods entering the country can be identified and subjected to the appropriate tax treatment. Manufacturers, while supporting the updating of a law that is almost two decades old, are warning that excessive restrictions, overlapping licences and product bans could make legitimate trade more expensive.