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Tag: Kenya

  • BAT’s Velo Pouches Back on Market in Kenya

    BAT’s Velo Pouches Back on Market in Kenya

    BAT Kenya resumed sales of its Velo oral nicotine pouches following regulatory clarity, signaling a renewed push into non-combustible products amid declining cigarette consumption, according to Capital Business. Company officials said this “regulatory clarity” involved confirming that oral nicotine pouches can be marketed and retailed under current rules rather than being in a grey zone or treated the same as banned products. The move supports the company’s strategy to diversify revenue streams in a market challenged by rising illicit tobacco sales. BAT Kenya reported a 10% drop in turnover in 2025 to Sh23.2 billion ($176.6 million), with Velo contributing about Sh232 million ($1.8 million), or roughly 1% of total revenue, between July and December 2025.

    Finance Director Philemon Kipkemoi said the return was enabled by a regulatory environment now accommodating oral nicotine products. With local manufacturing divested, Velo is currently imported from Pakistan, though local production may be reconsidered depending on performance. Globally, British American Tobacco has reached 34 million non-combustible product users, 68% of its 2030 target, and aims for 50% of revenue from such products by 2035. In Kenya, Velo could contribute 15–25% of total revenue within three to five years, forming a key part of BAT’s strategy to expand alternative nicotine products in line with evolving regulations and consumer trends.

  • Mombasa Traders Fighting Proposed Tobacco Law

    Mombasa Traders Fighting Proposed Tobacco Law

    Retail and hospitality traders in Mombasa are pushing back against Kenya’s Tobacco Control (Amendment) Bill, 2024, warning the proposed reforms could accelerate illicit trade and undermine legitimate businesses. Speaking at a press briefing, business owners cited Kenya Revenue Authority estimates suggesting more than 50% of excisable goods in the market are already illicit or non-compliant, including cigarettes and other regulated products. Traders argue the bill, sponsored by Senator Catherine Mumma, risks worsening the situation by introducing additional restrictions such as a proposed ban on flavored nicotine products, including vapes and nicotine pouches.

    Industry representatives said while protecting minors is important, further product restrictions could drive consumers toward unregulated markets, eroding tax revenue and threatening licensed operators. Coast Bar Owners Association Chairman Patrick Kabundu warned that removing legal product options could create supply gaps quickly filled by black market suppliers, while traders urged lawmakers to focus on enforcing existing laws, including Kenya’s ban on tobacco sales to individuals under 18, rather than introducing new regulatory measures they say could harm businesses and government revenue.

  • Young Children Gaining Access to Nicotine Products: Kenyan Survey 

    Young Children Gaining Access to Nicotine Products: Kenyan Survey 

    According to the 2024 Data on Youth and Tobacco in Africa survey, Kenya is facing a rise in tobacco experimentation among extremely young children, claiming that smokeless tobacco and roll-your-own cigarettes are reaching children as young as 5 years old. According to the survey, 6.5% of adolescents had tried tobacco at least once, and 2.5% used it within the past 30 days.

    Researchers said children as young as 6 had tried manufactured cigarettes, nicotine pouches, and/or shisha, while vape use was found by age 9. Only 5.4% of the youth surveyed reported being denied purchase of e-cigarettes, and 8.7% were blocked from purchasing cigarettes.

  • Kenya Stays Defamation Case Based on ‘Tobacco Bribes’

    Kenya Stays Defamation Case Based on ‘Tobacco Bribes’

    Kenya’s Court of Appeal temporarily halted the defamation case filed by National Assembly Speaker Moses Wetang’ula against the BBC, which he accused of defaming him in the 2015 documentary Panorama: The Secret Bribes of Big Tobacco. Wetang’ula seeks damages and costs over allegations that British American Tobacco bribed him while he served as Bungoma Senator.

    The BBC argued that continuing the High Court case would undermine its appeal and block access to crucial evidence from UK courts. Wetang’ula opposed the request, calling it procedurally flawed and delayed.

    The appellate court agreed the BBC raised an arguable point, noting the delay was not excessive and emphasizing the constitutional right to a fair trial. It granted the stay, pausing the High Court proceedings until the appeal is resolved, with costs to follow the outcome.

  • Kenyan Retailers Push Back Against Tobacco Control Bill

    Kenyan Retailers Push Back Against Tobacco Control Bill

    Bar owners and retailers in Kenya held a protest today (September 24) and urged the Senate to halt the progress of the Tobacco Control (Amendment) Bill, 2024, citing a lack of public consultation. The Bars, Hotels and Liquor Traders Association of Kenya (BAHLITA) and the Retail Traders Association of Kenya (Retrak) also submitted a joint petition, arguing that consumers, retailers, and manufacturers—those most affected by the proposed law—have been excluded from the legislative process. They contend that the bill, sponsored by ODM Senator Catherine Mumma, has been rushed forward without meaningful stakeholder input.

    The petitioners warn that the bill’s stricter regulations on nicotine products, including synthetic nicotine and e-cigarettes, could harm small and medium-sized businesses, increase compliance costs, and inadvertently drive legal trade into the illicit market. With half of Kenya’s cigarette market already illegal, they argue that the legislation could exacerbate black-market activity, threaten livelihoods, and reduce employment in retail. The groups are calling for inclusive, transparent consultations before the bill proceeds to the Committee of the Whole House stage.

  • AOI Kenya Loses $183M Tax Case

    AOI Kenya Loses $183M Tax Case

    Alliance One Tobacco Kenya Limited (AOTKL) was ordered to pay the Kenya Revenue Authority (KRA) Sh23.7 billion ($182.8 million) after the High Court dismissed its appeal following a protracted tax dispute, ruling the company’s leaf processing amounted to “manufacturing,” and therefore was subject to excise duties, according to Daily Nation Africa. The ruling comes after years of wrangling over corporate income tax, excise duty, and value-added tax liabilities, with KRA alleging under-declarations and misclassification of tobacco products. According to filings, the revenue body argued that AOTKL reported discrepancies between sales declared for corporate tax versus VAT returns, while also disputing how the company classified stemmed tobacco and semi-processed products.

    “Our operations in Kenya ceased nearly 10 years ago; however, an excise tax matter with the Kenya Revenue Authority remains ongoing in the courts,” said Miranda Kinney, a spokesperson from AOI. “While we respect the judicial process, we strongly disagree with the position taken by the High Court and are pursuing all appropriate avenues of appeal. We remain committed to meeting our regulatory and tax obligations while maintaining transparent, responsible business practices. Given this is an ongoing legal matter, we cannot provide further comment at this time.” 

    According to Kenya Law Reporting, the case was brought before the Tax Appeals Tribunal, which in September 2024 issued a mixed ruling, partly upholding KRA’s claims. AOTKL’s transfer pricing practices also came under scrutiny, with KRA challenging documentation around full-cost mark-up adjustments with related parties. Ultimately, despite some partial relief from the Tribunal, the company has been ordered to settle the liability, making it one of the largest tax recoveries in Kenya’s tobacco sector.

  • Kenya’s Health Secretary Pushes to Regulate Miraa and Shisha

    Kenya’s Health Secretary Pushes to Regulate Miraa and Shisha

    Kenyan Health Cabinet Secretary Aden Duale told the Senate that the country currently lacks laws regulating the use of miraa and shisha, and called on Parliament to enact necessary legislation to control their consumption. Appearing before the Senate Delegated Legislation Committee during deliberations on the Graphic Health Warnings for Tobacco Products, Duale said the Tobacco Control Bill, sponsored by Nominated Senator Catherine Mumma, offers a vital opportunity to introduce such controls.

    “The Ministry of Health fully supports the Bill,” Duale said. “We have submitted our proposed amendments and urge senators to pass it.” He also revealed that “powerful individuals” had tried to pressure the ministry into approving harmful tobacco products but insisted the entire government must safeguard public health.

    Mombasa Senator Mohammed Faki raised the alarm over the lack of regulations for miraa, muguka, and shisha, calling them as dangerous as tobacco. He warned that the tobacco industry would likely attempt to influence lawmakers to block the Bill.

  • Kenyan Officials Pushing Tobacco Packaging Changes

    Kenyan Officials Pushing Tobacco Packaging Changes

    Kenya’s Cabinet Secretary for Health, Hon. Aden Duale, issued a warning to tobacco manufacturers and distributors, urging full compliance with the country’s new packaging regulations under the Tobacco Control Act. Duale said all tobacco products must display graphic health warnings (GHWs)—including images and pictograms—as stipulated in Section 21 of the Act. The Ministry has granted a nine-month compliance period from the date of gazettment.

    “These warnings are not optional. They are a legal requirement designed to educate the public and protect our youth and vulnerable populations from the dangers of tobacco,” said Duale. “Non-compliance will attract the full force of the law.”

    The Ministry of Health issued the third set of GHWs last week.

  • Kenya: Illicit Cigarettes Jump to 37% of the Market 

    Kenya: Illicit Cigarettes Jump to 37% of the Market 

    Kenya is losing more than Sh9 billion ($69 million) annually in potential revenue (taxes and levies) to the illicit cigarette trade, a new report now indicates, with almost all of these products being smuggled into the country. The newly released findings from a study conducted by international research company Kantar indicate that the illicit cigarette trade in Kenya has soared to a record high, with more than one in three cigarettes sold in the market not paying taxes.

    BAT Kenya is calling for urgent action by the authorities to tackle and mitigate the profound implications of illicit trade in cigarettes, and said “this alarming situation calls for drastic, multipronged action to seal the loopholes and protect legitimate business in Kenya.”

    “This alarming rise in illegal cigarette trade is not only depriving the Kenyan government of vital revenue needed for the country’s economic stability, but is also undermining the security and livelihoods of thousands of Kenyans in our value chain,” BAT Kenya managing director Crispin Achola said. “The illicit trade in cigarettes is not only an economic issue, it is a matter of national security and public interest.”

    Last year, the value of smuggled and counterfeit goods seized at Kenya’s entry points, reached Sh243. 5 million ($1.9 million), according to Kenya Revenue Authority (KRA), up from Sh200 million ($1.5 million) the previous year. Reports also suggest illicit cigarettes jumped from occupying 27% of the market to 37% in just one year.  

  • NewCo Funding Clean Water in Kenya

    NewCo Funding Clean Water in Kenya

    NewCo announced a new initiative where it donates $300 to provide clean and safe water to Masaai communities in rural Kenya for every container of African-origin tobacco it sells.

    “As we celebrate 20 years of proudly serving our suppliers and customers, we want to give back to the communities that make our work possible,” NewCo owner Rainer Busch said. “Over 40% of Kenya’s rural population lacks access to clean drinking water, forcing families – especially women and children – to walk long distances daily just to fetch water. Many rely on contaminated sources, leading to severe health risks like cholera and dysentery.

    “With your support, we can fund sustainable water solutions; improving health, reducing hardship, and empowering entire communities.”

    NewCo is also accepting donations for the cause, with Busch saying, “Any amount, big or small, can accelerate our impact.”