Newly released findings by Kantar, the international research company, show that the illicit cigarette trade in Kenya has soared to a record high, with more than one in three cigarettes sold not paying taxes. This comes on the back of recent reports by the Kenya Revenue Authority (KRA) that the value of goods smuggled into the country in 2024 rose by KES 43.5 million to KES 243.5 million.
Mr Crispin Achola, BAT Kenya Managing Director said 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 also undermining the security and livelihoods of thousands of Kenyans in our value chain. “This situation calls for drastic multi-pronged action to seal the loopholes and protect legitimate business in Kenya,” Mr Achola said.
The growth in the number of illicit cigarettes sold also shows that the illicit cigarette market in Kenya moved from 27% just a year ago, to the current unprecedented 37%. BAT Kenya has called for urgent action by the authorities.
This dramatic increase is causing an estimated loss to the exchequer of KES 9 billion annually in revenue from taxes and levies, according to BAT’s analysis of the Kantar data. This is a sum that is crucial for the country’s much-needed development programmes and public services.
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Most of the illicit cigarettes entering the Kenyan market are smuggled in from neighbouring countries, highlighting the cross-border nature of this illegal trade. The findings identify product from Uganda as the primary culprit.
“The illicit trade in cigarettes is not only an economic issue – it is a matter of national security and public interest,” said Achola. “Every illicit cigarette sold represents an increase in organised crime and a threat to legitimate local businesses and jobs. It is critical that all stakeholders work together to eliminate this problem and protect the interests of Kenyans.”
He said BAT is committed to addressing this issue, adding that the battle against illicit trade calls for a united front from all sectors, including government, security forces, private sector, media and the public, to ensure a more secure future for Kenya.
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