Key Takeaways

• Cannabis law and regulations:
  • The Kentucky Cabinet for Health and Family Services is charged with the implementation, operation, oversight, and regulation of the medicinal cannabis program.
• Licenses available:
  • Cultivator; Processor; Producer; Safety Compliance Facility; Dispensary. Applicants cannot apply for more than one cannabis business license type.
• Products legal:
  • Permitted forms include unprocessed medical cannabis flower for vaporization, capsules, tinctures, and topical products, with a 35% THC cap on flower products, 70% for concentrates and 10 milligrams per serving for edibles.
• Taxes:
  • Medical cannabis is exempt from sales and excise taxes.
• Market:
  • Licenses: 16 cultivator, 10 processor and 48 medical cannabis dispensary licenses were awarded in 2024.
  • Patients: In December 2024, more than 2,500 Kentuckians visited a registered practitioner and received written certifications.

Cannabis Legalization in Kentucky

On March 31, 2023, the governor of Kentucky signed bill SB 47 to legalize medical cannabis in the state. On April 17, 2024, Gov. Beshear signed the final version of HB 829 into law to start issuing medical cannabis licenses to businesses in July 2024.

• Patients with recommendations from physicians or nurse practitioners may be eligible to use cannabis only if they have cancer, severe pain, epilepsy or other seizure disorders, multiple sclerosis or muscle spasms, chronic nausea or post-traumatic stress disorder.
• Patients will be allowed to carry a 10-day supply of cannabis with them and a 30-day supply at home.
• Home cultivation will not be allowed.
• Smoking will be prohibited.
• Cultivation will be allowed in an indoor growing space such as a room, greenhouse, building, or other indoor enclosed area that is maintained and operated by a cultivator or producer and is equipped with locks and other security devices that permit access only by authorized agents of the cultivator or producer.
• Permitted forms include unprocessed medical cannabis flower for vaporization, capsules, tinctures, and topical products.
• There will be a 35% THC cap on flower products and 70% cap for concentrates. Edibles cannot exceed 10 milligrams per serving.
• Medical cannabis will be exempt from sales and excise taxes.

Cannabis Licensing

The licensing process was open from July 1, 2024, to August 31, 2024, for Tier I, Tier II, and Tier III cultivator licenses, processor licenses, dispensary licenses, and safety compliance facility licenses. The Kentucky’s Office of Medical Cannabis (OMC) received about 5,000 applications for medical marijuana business licenses and approved the state’s first-ever medical marijuana business license for a testing lab in September 2024. Medical cannabis will be available for eligible Kentucky patients starting January 1, 2025.

How to Start a Cannabis Business in Kentucky

In October 2024, the first lottery was held and 26 medical cannabis licenses were awarded to the winners: 16 cultivator licenses and 10 processor licenses. On November 25, 2024, 36 medical cannabis dispensary licenses were awarded through another lottery. Another 12 medical cannabis dispensary licenses were awarded on December 16, 2024. A full list of the licensees can be found on OMC’s official website.

One of the licensed medical cannabis cultivators began cultivation operations on July 11, 2025, and was expecting to have its first harvest in about two months. As of October 2025, another two cultivators also started to grow medical cannabis and one of the growers was planning to launch the state’s first processing facility by the end of the month. As of December 2025, the state has approved 16 cultivators, 10 processors, 48 dispensaries, and 6 safety compliance facilities.

On December 13, 2025, Kentucky’s first medical cannabis dispensary opened, offering cannabis products for sale to the state’s registered patients.

Kentucky Cannabis Market Stats

From December 1, 2024, qualifying patients can use a directory to search for a provider near them who can prescribe medical cannabis. Patients can submit an application for a medical cannabis card after they obtain a written certification from a registered medical cannabis practitioner. Applications for medical cannabis cards began to be accepted from January 1, 2025. Just 18 days after the directory with authorized practitioners was opened, already 2,480 Kentuckians have visited a registered practitioner to receive a written certification. Most of the written certifications were given for chronic pain (55.4%), followed by post-traumatic stress disorder (24.2%) and multiple sclerosis (8.7%). In July 2025, 11,504 Kentuckians have successfully received their medical cannabis cards. In October 2025, more than 15,000 people have been approved for a medical cannabis card.

From December 2024 to December 2025, the number of physicians authorized to write certifications for patients with qualifying medical conditions more than doubled from 220 to 506.

According to MJBizDaily’s predictions, medical cannabis sales in Kentucky can reach $126 million in 2026.

Kentucky Cannabis Market Infographics

Kentucky Hemp Industry