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Tag: Mastermind Tobacco

  • Kenya Approves Signature Leaf Acquisition of Mastermind Tobacco Assets

    Kenya Approves Signature Leaf Acquisition of Mastermind Tobacco Assets

    Kenya’s Competition Authority approved Signature Leaf Ltd.’s acquisition of certain assets belonging to Mastermind Tobacco (K) Ltd., which is under administration. The approval was published in the Kenya Gazette Oct. 2, under Gazette Notice No. 15916, following a decision dated Aug. 21 under Section 46(6)(a)(ii) of the Competition Act. The transaction could mark a new chapter for the Kenyan tobacco manufacturer, which stopped production in June 2023 and was placed under administration by I&M Bank in December 2023.

    According to The Kenya Times, Mastermind was founded in 1987 by the late Wilfred M’iti Murungi, a former British American Tobacco Kenya executive, and grew to become Kenya’s second-largest cigarette manufacturer after BAT. Its cigarette brands included Supermatch and Rocket. The company later faced financial difficulties, including a tax dispute with the Kenya Revenue Authority involving reported arrears of about KSh2.9 billion ($22.3 million), and subsequently dismissed about 1,000 employees as its financial position deteriorated.

  • Layoffs at Mastermind Tobacco

    Layoffs at Mastermind Tobacco

    Image: vadim_key

    Mastermind Tobacco has terminated the contracts of approximately 1,000 employees after being placed under administration due to undisclosed debt, reports Pulse.

    The company, owned by the late Wilfred Murungi’s estate, ceased cigarette production six months ago

    Mastermind Tobacco, which imported over half of its raw materials from Uganda and the Democratic Republic of the Congo into Kenya, has been involved in legal battles with employees and local tax authorities.

    In 2019, Mastermind and the Kenya Revenue Authority (KRA) agreed to sell the company’s prime assets to settle a KES2.9 billion ($18.83 billion) tax arrear. Earlier this year, the company lost a KES517 million lawsuit against the KRA, with the High Court denying it the opportunity to introduce new evidence.

  • Mastermind Sounds Alarm Over Illicit Trade

    Mastermind Sounds Alarm Over Illicit Trade

    Photo: Axel Bueckert

    Mastermind Tobacco has asked the government of Kenya to crack down on the illicit cigarette trade, reports The Standard.

    “We are concerned at the growing level of illicit cigarettes making their way into the country, especially from Uganda,” Mastermind said in a statement.

    “We are the biggest losers in the market because when we have 80 percent of illicit products bearing the name of our product and are sold cheaply in the country, we will not be able to compete.”

    Mastermind said it is ready to work with government agencies including Kenya’s Inter-Agency Anti-Illicit Working Group and the Anti-Counterfeit Agency, regional bodies including the East African Community and COMESA as well as international organizations such as the World Trade Organization and World Health Organization to eliminate the illicit tobacco trade.

    “If we do not work together, we may be forced to shut down because we will not be able to compete against products that are not paying tax,” Mastermind Tobacco stated.

    A recent survey by its competitor British American Tobacco found that Kenya is losing up to KES6.5 billion ($45.67 million) annually in taxes as a result of the illicit cigarettes.

    An estimated one in every five products sold in Kenya is counterfeit and almost 4 million Kenyans are using counterfeit goods that include sugar, cigarettes, bottled water and cooking oil.

    Last month, the Kenya Revenue Authority in collaboration with the Inter-Agency Team destroyed an assortment of illicit goods seized from the market worth KES500 million with an estimated tax value of KES150 million.