BAT Kenya warned that illicit cigarettes now account for about 45% of Kenya’s cigarette market, costing the government an estimated Sh12 billion ($92.4 million) annually in lost tax revenue. The company said the illegal trade is undermining legitimate manufacturers and threatening an industry that supports about 80,000 livelihoods across farming, manufacturing, distribution, and retail.
BAT Kenya Managing Director Sidney Wafula said illicit cigarettes, particularly those entering through porous borders including Uganda, are the company’s biggest challenge. “The continued rise in illicit cigarette trade remains the most significant threat to the sustainability of the legitimate industry and its value chains,” Wafula said, calling for sustained enforcement and stronger border controls.
The warning came as BAT Kenya reported half-year revenue growth of 5% to Sh12.3 billion ($94.7 million), supported by export recovery and growth in nicotine pouches. The company said it expects continued growth in modern oral nicotine products while urging predictable tax policies and stronger action against illicit tobacco trade.
