British American Tobacco (BAT) Kenya has raised the prices of nearly all its cigarettes by up to KES15 ($0.15) per pack. The company said these changes are meant to pass increased taxes to consumers.
Excise duty on cigarettes was raised by 14.1 percent effective November 2019.
The higher taxes have made cigarettes in Kenya more expensive, driving cigarette smuggling up. “These new prices have been largely driven by the enactment of the Finance Act 2019, which has further increased the excise differential for tobacco products between Kenya and Uganda,” BAT said. “We are now seeing significant volumes of illicit cigarette products coming across the Ugandan border.”
Sportsman King Size rose to KES190 per pack from KES175, Rothsman Blue rose to KES190 per pack from KES175, Embassy brands rose to KES260 per pack and Rooster, the low-end brand, rose to KES130 per pack from KES5.
BAT says the new prices are only guides, and consumers may see even higher prices in stores.
The changes in price come a few months after BAT reported a 25.5 percent rise in net earnings in its 2019 half-year to KES2.53 billion, buoyed by a 10 percent increase in gross revenue to KES19.2 billion.
The company attributed the revenue increase to excise-led pricing impact in Kenya and Somalia coupled with growth in cut-rag sales to Sudan.