Cigarette maker hits out at rivals over new law

By Macharia Kamau

British American Tobacco (BAT) Kenya has accused competitors in the tobacco sub-sector of unfair trade practices for not complying with the regulations set out in the Tobacco Control Act.

The Act came into force in July last year and required all players to bear bold messages on their products warning consumers of hazards posed by the product. The law also prohibits advertising and other promotional activities.

The firm said full industry compliance is still pending.

"There is still branding, advertising and even promotion being practiced within the industry, which is contrary to the law," said Managing Director Gary Fagan.

He said the company spent over Sh100 million in market a de-branding excise to bring its products into compliance with the law.

Fagan said the non-enforcement of the law would create an unregulated environment that would fuel growth of illicit trade in Kenya.

Excise duty

Currently, about 12 per cent of cigarettes consumed in Kenya are illicit, either having entered into the country irregularly or those manufactured locally but destined for export markets finding their way back into the Kenyan market.

Fagan said illicit trade denies the Government and legal tobacco traders revenue that runs into billions.

He was speaking yesterday during the company’s 57th Annual General Meeting.