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BAT to continue operations despite harsh environment

By Standard Reporter | June 26th 2015

BAT Kenya says it will continue growing and distributing tobacco in Kenya. This is even in the face of growing anti-smoking campaigns and planned introduction of additional taxation.

The firm says it will go on supporting the growth of tobacco in Eastern, Nyanza and Western  regions - where it has traditionally contracted farmers.

"We will continue processing tobacco leaf across East Africa at our green leaf threshing plant based in Thika. To do this, we will continue to work with our contracted farmers," said the firm's Head of Legal and Corporate Affairs Simukai Munjanganja.

"While we cannot comment on the strategic processes or models employed by other players, as a key player in the manufacturing industry in Kenya, we are confident of our future," Munjanganja said.

He announced that the firm will give farmers contracts even though another player, Alliance One Tobacco Kenya, announced it is repositioning its operations in Kenya.

Alliance One Tobacco has contracted some 15,000 farmers in Migori County and pays them about Sh1.7 billion annually. "Kenya remains a strategic hub for BAT Kenya and a net exporter for the manufacturing industry," Munjanganja said in an interview.

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