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Tag: Uganda

  • BAT Uganda Points to Illicits for 18% Revenue Drop

    BAT Uganda Points to Illicits for 18% Revenue Drop

    British American Tobacco Uganda Ltd. reported an 18% drop in gross revenue to Shs 67 billion ($18.1 million) for fiscal 2025, citing a surge in illicit cigarette sales, according to audited results. Net revenue fell 21% to Shs 36.3 billion ($9.8 million), while total comprehensive income declined 19% to Shs 9.8 billion ($2.6 million). The company attributed the decline to rising tax-evaded cigarette consumption, which research shows reached 45% of the market by December 2025, up from 34% the previous year — equivalent to an estimated Shs 53 billion ($14.3 million) loss in government revenue. Operating costs fell 21% to Shs 24 billion ($6.5 million), but net asset value dropped sharply to Shs 32.5 billion ($8.8 million) from Shs 49.3 billion ($13.3 million) in 2024.

    Despite the downturn, BAT Uganda’s tax contributions rose 4% to Shs 46.4 billion ($12.5 million), aided by capital gains from the sale of a non-strategic asset. The board proposed a final dividend of Shs 199 ($0.054) per share, down 5% from 2024, payable July 31 to shareholders on record as of July 24. Company secretary Paul Mbuga emphasized the need for a multi-agency government response, particularly at the South Sudan border, to combat illicit imports, noting that contraband cigarettes often bypass digital tax stamps and health warnings, undercutting prices and presenting public health risks.

  • Uganda Ups Cigarette Taxes

    Uganda Ups Cigarette Taxes

    Uganda increased excise duties on cigarettes, raising taxes on soft cap products from Shs 55,000 ($15.40) to Shs 65,000 ($18.20) per 1,000 sticks, and on hinge lid cigarettes from Shs 80,000 ($22.40) to Shs 90,000 ($25.20). For non-East African Community imports, the rates doubled to Shs 150,000 ($42) and Shs 200,000 ($56), respectively.

    The tax hike came just before the announcement of the World Health Organization’s “3 by 35” initiative, where it urged all nations to increase real prices on tobacco, alcohol, and sugary drinks by at least 50% by 2035 to combat rising rates of noncommunicable diseas-es such as cancer, diabetes, and heart disease.

    Uganda’s Ministry of Finance said its move aims to reduce tobacco consumption, protect public health, and raise revenue for healthcare and development.

  • KT&G Provides Water Filters to Uganda

    KT&G Provides Water Filters to Uganda

    Photo: KT&G

    KT&G is providing 400 environmentally friendly water purification devices worth KRW110 million ($81,406) to 94 primary schools in Uganda. Park Hyeon-seok, KT&G’s Tanzania materials branch manager, attended a distribution ceremony on April 30 in Hoima City, at the heart of Uganda’s tobacco-growing area.

    Out of approximately 49.9 million nationals, 9.2 million lack access to safe drinking water, according to According to Uganda’s Water Environment Authority. This contributes to the spread of waterborne diseases such as cholera, and typhoid fever, leading to high infant mortality rates and social issues.

    The gravity-fed filtration devices supplied by KT&G will not only address Uganda’s drinking water hygiene issues but also replace the traditional water purification methods that involve boiling water using wood and charcoal, thereby saving the equivalent of up to 3,500 tons annually in carbon emissions.

    Exporting to more than 130 countries, KT&G says its tries to help solve various social issues in countries where it operates, especially in developing nations. In 2021, KT&G also supported a Tanzanian primary school by providing 1,300 water purification units. Additionally, the company has implemented CSR activities tailored to the specific conditions of various countries. These initiatives include supporting vocational training centers in Indonesia, establishing agroforestry education centers in Mongolia, and constructing schools in Laos.

    “We hope that this water purification support will help improve the sanitary conditions in Uganda,” said Shim Young-Ah, director of KT&G’s ESG management office, in a statement. “As a global corporate citizen, we will continue to focus on and fulfill our social responsibilities to countries in need.”

  • BAT Uganda Impacted by Illicit Trade

    BAT Uganda Impacted by Illicit Trade

    Photo: Taco Tuinstra

    BAT Uganda’s 2022 performance was impacted by the country’s slow economic recovery and growing illicit trade, according to a report in The Independent.

    Gross revenue increased by 6 percent to UGX99.5 billion ($27 million) driven by higher sales volumes. However, general inflation rates drove up the cost of production by 15 percent, causing after-tax profits to drop 6 percent.

    “Whilst the fundamentals of our business remain solid as evidenced by our sustained investment in the country for 95 years, the increasing incidence of illicit trade in Uganda remains a major threat to the sustainability of our business going forward,” said BAT Uganda Managing Director Mathu Kiunjuri during the company’s annual general meeting on July 6.

    The incidence of illicit cigarettes rose from 23.8 percent in December 2021 to 29.4 percent in December 2022, according to industry research.

    According to Kiunjuri, the government loses up to UGX30 billion annually to the illicit cigarette trade. Third-party research indicates that most illicit cigarettes are mislabeled as exports or smuggled in from neighboring countries.

    Uganda is reportedly also increasingly becoming a source of illicit cigarettes in regional markets such as Kenya.

    A recent market study revealed that several BAT Uganda and BAT Kenya brands intended for sale in other countries end up in shops in Uganda.

    Despite the challenges, Kiunjuri praised the Uganda Revenue Authority  (URA), which he said has made significant progress in fighting the illicit cigarette trade. “However, for meaningful and lasting impact, it is critical that government redoubles its efforts, including ramping up multi-stakeholder and cross-border collaboration to ensure effective enforcement and enhancement of anti-illicit trade regulations,” he said.

    According to the URA, cigarette smuggling accounts for up to 27 percent of smuggled goods in Uganda, with the Supermatch brand accounting for more than 90 percent of the seized cigarettes.

  • BAT Donates Cigarette Destruction Machine

    BAT Donates Cigarette Destruction Machine

    Photo: Taco Tuinstra

    BAT has donated a Hammermill cigarette destruction machine to the Uganda Revenue Authority (URA) to support the national fight against illicit cigarette trade, reports the PML Daily. 

    Receiving the machine at the URA head offices in Nakawa, acting Commissioner of Customs Okaka Godfrey said that the Hammermill will provide a more convenient and cost-efficient way to destroy illicit cigarettes compared with manual methods. 

    The acquisition of the machine follows a report by Kantar suggesting that nearly one-third of the cigarettes sold in Uganda are illicit. More than half of these illicit cigarettes are manufactured in Uganda for export, with the rest being manufactured in other countries before being smuggled into the country. 

    The government misses out on an estimated USH30 billion ($8.01 million) in tobacco tax revenues each year due to the illicit cigarette trade. BAT attributes a recent 41 percent drop in tax remittances to the URA to competition from the illicit market.

    According to BAT Managing Director Mathu Kiunjuri, the illicit trade problem has become worse recently. This year, the share of the illicit market has increased to 27.5 percent from 23.8 percent in 2021 and 15.4 percent in 2020.

    Between 2019 and 2022, URA enforcement teams seized more than 293,099 cartons of illicit cigarettes valued at $340,000. The major brand intercepted was Super Match made in Uganda for export, followed by high end brands such as Dunhill, Business Royal and Sportsman.