Kenya Proposes Ban on Nicotine Pouches and Shisha

The Kenyan government has proposed a ban on nicotine pouches and shisha, a flavoured tobacco product smoked through a water pipe, as part of efforts to regulate tobacco products and promote public health. The Alcoholic Drinks and Drugs Control Laws (Amendment) Bill, 2026, seeks to prohibit the manufacture, sale, and distribution of nicotine pouches and shisha. The bill, sponsored by Majority Leader Kimani Ichung'wah, aims to curb the growing popularity of nicotine pouches, which have been marketed as a less harmful alternative to traditional cigarettes.

The proposed ban is likely to affect several firms, including BAT Kenya, which had planned to pivot from conventional cigarettes to nicotine pouches. BAT Kenya had resumed the sale of its smokeless tobacco product, Velo, in June 2025, after months of a stand-off with the government on regulation of nicotine pouches. The company's management had been optimistic that nicotine pouches would account for a fifth of its annual sales in the medium term. However, with the proposed ban, those hopes may be dashed.

Other players in the nicotine pouch market in Kenya include Philip Morris International, which deals in the Zyn brand, and Consumer Brands International, which manufactures the Goat brand. The proposed ban comes as BAT Kenya's core business of selling cigarettes has come under pressure due to increasing awareness of the health effects of smoking and restrictive laws imposed by governments worldwide.

The Kenya nicotine pouch market hosts several brands, including Paz by Dholakia Tobacco Pvt. Ltd, Sky by NiqoCo Limited, Red Piper by N.G.P Tobacco ApS, and Gold Pouch. The proposed ban has sparked concerns among industry players, with BAT Kenya chief executive Sidney Wafula calling for regulatory certainty and stability. Wafula expressed confusion over the rationale behind the proposal, given that the government is already working on a Tobacco Control Bill.

Those who contravene the proposed ban will face a fine of not more than Sh5 million or serve a jail term of at least 10 years or both upon conviction. The bill has been introduced in the National Assembly and is awaiting committee scrutiny. The proposed ban on nicotine pouches and shisha is part of a broader effort to regulate tobacco products and promote public health in Kenya.

BAT Kenya's financial performance has been impacted by the growing popularity of illicit trade in the country. The company's net revenue grew 4.6 percent to Sh12.2 billion in the six months to June 2026, largely due to a recovery in export sales. The company's management has been exploring alternative products, such as modern oral nicotine pouches, to offset the downturn in domestic sales.

The proposed ban on nicotine pouches and shisha has significant implications for the tobacco industry in Kenya. Industry players will be watching closely as the bill progresses through the National Assembly. The government's efforts to regulate tobacco products and promote public health are likely to continue, with potential implications for firms operating in the sector.

Key points

• The proposed ban on nicotine pouches and shisha in Kenya is likely to affect several firms, including BAT Kenya, which had planned to pivot from conventional cigarettes to nicotine pouches.