91-day T-bill8.750%▲ 0.002
182-day T-bill8.851%▼ 0.008
364-day T-bill9.029%▲ 0.002
Central Bank Rate8.75%07/10/2026
Inflation7.3%October 2026
Top MMF yield10.34%Jubilee
Sources: CBK auction, 2 Nov 2026 value date (change vs 26 Oct); CBK key rates; fund managers' published yields, as at 31st December 2025 to 31st March 2026.

Nicotine pouch ban: new Bill proposes KSh5m fine or 10 years in jail

Nicotine pouch ban Bill: the Alcoholic Drinks and Drugs Control Laws (Amendment) Bill, 2026 would outlaw pouches and shisha, with KSh5m fines. What it means for BAT Kenya.

Nicotine pouch ban: Parliament Buildings in Nairobi
Parliament Buildings, Nairobi. Photo: Jorge Láscar / Wikimedia Commons, CC BY-SA 2.0

Get breaking business news on WhatsApp

A nicotine pouch ban is back on the table: a government-backed Bill in the National Assembly would outlaw nicotine pouches and shisha in Kenya, with fines of up to KSh 5 million, jail terms of up to 10 years, or both. The Alcoholic Drinks and Drugs Control Laws (Amendment) Bill, 2026, sponsored by Majority Leader Kimani Ichung’wah, was introduced for first reading on Thursday, 5 November 2026, the Daily Nation and Business Daily reported on 8 November.

“A person shall not manufacture, sell, offer for sale, use, advertise, promote or distribute shisha or nicotine pouches,” the Bill reads, according to Business Daily. The nicotine pouch ban is still only a Bill at first reading and is not law. It must go through committee review, public participation and the remaining stages of debate before it can be passed.

What the nicotine pouch ban Bill proposes

  • Ban: no manufacture, sale, offer for sale, use, advertising, promotion or distribution of shisha or nicotine pouches.
  • Facilitation offence: it would also be an offence to allow, promote, facilitate or encourage shisha smoking or nicotine pouch use.
  • Penalty: on conviction, a fine of up to KSh 5 million, prison for up to 10 years, or both, as quoted by the Nation.
  • Chang’aa: the drink is not banned, but it would have to be sold in sealed glass bottles with non-refillable caps and a security label.
Nicotine pouch ban: Parliament Buildings in Nairobi
Parliament Buildings, Nairobi, where the Bill now goes to committee. Photo: Jorge Láscar / Wikimedia Commons, CC BY-SA 2.0

What a nicotine pouch ban means for BAT Kenya and retailers

BAT Kenya launched nicotine pouches in Kenya in June 2025, after a long dispute with the government over how the product should be regulated, Business Daily reported. The company had been counting on smokeless products as cigarette volumes fall. BAT Kenya managing director Sidney Wafula told the paper the firm was still trying to understand the rationale for the ban, because a separate Tobacco Control Bill is already before Parliament, and he called for regulatory certainty.

That earlier Tobacco Control (Amendment) Bill, 2024 would regulate pouches instead of banning them. It includes a proposed cap of 20 milligrams of nicotine per pouch, according to Nation reporting on the health committee’s hearings. If both Bills move ahead, MPs will have to choose between an outright nicotine pouch ban and a licensing approach.

For shareholders, the outcome matters because pouches were part of BAT Kenya’s growth plan. Our BAT Kenya dividend history shows how much investors rely on the company’s payouts. Supermarkets, petrol station shops and lounges that sell pouches or shisha would also lose that income if the nicotine pouch ban passes.

What happens next for the nicotine pouch ban

After first reading, the Bill goes to the relevant departmental committee. The committee will invite public comments and report back before second reading. Businesses that sell these products can make submissions when the committee calls for them. Until any law takes effect, current rules continue to apply.

Frequently asked questions

Are nicotine pouches banned in Kenya now?

No. The ban is in a Bill that was read for the first time on 5 November 2026. It becomes law only if Parliament passes it and the President signs it.

What is the proposed penalty?

A fine of up to KSh 5 million, imprisonment for up to 10 years, or both, according to the Bill as quoted by the Nation.

Does the Bill ban chang’aa?

No. It sets packaging rules for chang’aa, including sealed glass bottles and a security label.

ShareWhatsAppFacebookXLinkedIn

Get the weekly Business Radar briefing

Get Kenya's money, jobs and deadline updates.

One short email a week with exam dates, deadlines, job openings and money changes in Kenya.

Topics (optional)

Prefer WhatsApp? Follow Business Radar on WhatsApp

Weekly, free. We only use your email for this newsletter and you can unsubscribe in one click. Privacy policy.

Want more Business Radar stories in your Google results? Add us as a preferred source.

About Author

Norah Waceke is a business journalist and editor at Business Radar with more than eight years of experience covering Kenya's economy, companies and markets. She previously worked at one of Kenya's leading digital news platforms, where she reported on business, finance and current affairs. A graduate of Multimedia University of Kenya, Norah focuses on clear, accurate reporting that helps readers understand the money stories shaping their lives and businesses.

More from Norah Waceke · Editorial policy

Related stories

News

Victoria Wealth Management joins NSE: 4 services it can now offer investors

Victoria Wealth Management, a Victoria Commercial Bank subsidiary, is now an NSE trading participant able to trade shares and bonds
News

KRA auction: 430 smartphones, laptops and perfumes up for sale in December

KRA auction notice: overstayed goods at Eldoret, Naivasha, Nakuru and Lodwar warehouses go on sale on iBid from 28 to
★ Add Business Radar as a preferred source on Google
Latest