BAT wins first round in major tobacco laws case

Cigarette maker British American Tobacco has won the first round of a landmark suit against the State, which would have, among other implications, an annual cost of over Sh400 million.

The firm successfully contested the Tobacco Control Regulations that would have come into effect on June 5, which required that the BAT pays two per cent of its revenues that would be paid into the Tobacco Control Fund. At last year’s total revenue of Sh22 billion, enactment of the regulations would realise about Sh440 million for the fund to be spent on tobacco-related research and rehabilitation of smokers.