Money Markets
A busy smoking zone in Nairobi. Cigarette dealers and makers have
received a temporary relief after the court suspended implementation of a
tough tobacco regime. PHOTO/FILE
By BRIAN NGUGI, bnjoroge@ke.nationmedia.com
In Summary
Kenyan cigarette makers and traders have been saved
from immediately implementing tough new tobacco law after the Court of
Appeal issued a 30-day stay order and the State allowed dealers time to
sell old stocks till end of next month.
The stringent tobacco control rules were supposed to come
into effect last Monday with industry players forecasting huge losses as
old inventories were yet to be relabelled.
Industry figures show an estimated 59,000 traders engage in the tobacco business countrywide.
Besides requiring new cigarette packs to display
graphic health warnings, the regulation prohibit sale of single
cigarette sticks and only allows that of full packets.
Wholesalers and traders are also expected to display prominent signage warnings on the dangers of tobacco use at points of sale.
“We give an order for stay of the implementation
and an operation of the Tobacco Control Regulation 2014 LN 169 of 2014
for a period of 30 days with effect from the date hereof to facilitate
the effectual hearing of the substantive appeal,” said Court of Appeal
Judges E M Githinji, H M Okwengu and J Mohammed on Thursday last week.
However, this breathing space could be temporary as
the Court of Appeal could still rule against the appeal by Tobacco
companies against the High Court ruling that declared the rules valid in
March.
A spot check by the Business Daily last
week revealed a majority of distributors still hold large stocks of
cigarettes with packaging that would be outlawed by the new rules.
On Tuesday, traders expressed relief over the stay orders.
“We are relieved and hope they will pave way for a
structured dialogue on the implementation of the rules,” said
Nairobi-based cigarette trader Patrick Ndirangu.
Traders had expressed fears that they would be unable dispose of old stocks before the new laws take effect.
Retail Trade Association of Kenya CEO Wambui
Mbarire had earlier said: “There is a need to extend the implementation
period to ensure exhaustion of stock.”
The government had vowed to effect the rules without fail but has since changed tune.
An earlier letter sent to all County Public Health
Officers and County Police Commanders bearing the signature of the
Public Health Director and Tobacco Control Board Secretary Kepha Ombacho
also said the Health ministry has granted a window period of one month
from effective date to allow cigarette stocks (with the outlawed
packaging) in the market to get sold out.
“For purposes of smooth transition the old stock may
continue in the market up to 31 October 2016,” said the document copied
to tobacco companies dated September 1.
The Health ministry had earlier said in a public notice that
all Kenyans and tobacco firms are bound by the new rules and those
flouting them would be punished.
“The Ministry of Health has released the digital
device containing the first batch of pictorial health warnings that will
run from September 26 to December 31, 2016. The second batch of
pictorial health warnings that will run from January 1 to December, 31,
2017 will be dispatched to you shortly,” said Health secretary Cleopa
Mailu in the notice.
Ms Mbarire though had said few traders were aware of the new rules.
“In preparation for implementation of this
regulation we have been talking to our members and realised that a
significant percentage are not aware of the regulation. From our
interactions it is evident that there is need for more communication
from the tobacco board and the association to ensure that there are no
grey areas and any chances of harassment and irregularities,” she said.
On Monday Anti-tobacco health campaigners led by
the International Institute for Legislative Affairs head Emma Wanyonyi
expressed disappointment at the stay orders.
“We are disappointed about the delay in implementing the regulations,” she said
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