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Originally published by Capital Business
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business
May 19, 2026
1mo ago

Business Lobby Flags Sh12bn Illicit Tobacco Threat in New Bill

Business Lobby Flags Sh12bn Illicit Tobacco Threat in New Bill

NAIROBI, Kenya, May 19 - The Kenya National Chamber of Commerce and Industry (KNCCI) has warned that the proposed amendments to Kenya’s tobacco control Kenya breaking news | Kenya news today |..

✨ Key Highlights

The Kenya National Chamber of Commerce and Industry (KNCCI) has raised concerns that the proposed Tobacco Control (Amendment) Bill, 2024 could exacerbate the illicit tobacco trade, estimated to cost the government Sh12 billion annually in lost taxes.

  • An estimated 47 percent of cigarette consumption in Kenya in 2025 was illicit, up from 37 percent the previous year.
  • The KNCCI argues that additional licensing requirements risk increasing compliance costs and driving small businesses into informal channels.
  • The lobby group also opposes proposed bans on single-use plastics linked to tobacco products and restricts sales near areas frequented by those under 18, citing potential supply chain disruptions and unintended consequences for formal traders.

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The High Court has extended a freeze on the sale of a 15 per cent stake in Safaricom Plc to parent firm Vodacom Group Limited, delaying a potential Sh244.5 billion windfall for the National Treasury. Separately, Equity Group Holdings has reported a significant 24 per cent year-on-year rise in Profit After Tax, reaching Sh19.1 billion for the first quarter ended March 2026, driven by strong performance from its regional subsidiaries and insurance arm. The Kenya National Chamber of Commerce and Industries has also raised concerns that the proposed Tobacco Control (Amendment) Bill, 2024 could exacerbate the illicit tobacco trade, estimated to cost the government Sh12 billion annually in lost taxes.

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