This archive report was first published on 14 January 2020.
On January 2, 2020, British American Tobacco (BAT) Kenya implemented price increments for nearly all its cigarettes, with some packets now selling at Sh15 more than before.
The move is aimed at passing on the increased taxes to consumers, following the Finance Act 2019 that raised excise duty on cigarettes by 14.1 percent.
The levy per mille (thousand sticks) on filtered cigarettes rose to Sh3,157 from Sh2,765, while the tax on cigarettes without filters jumped to Sh2,272 from Sh1,990 per mille.
According to BAT, the higher taxes have made cigarettes made in Kenya expensive, leading to an increase in smuggling of cheap products from neighboring countries.
"These new prices have been largely driven by the enactment of the Finance Act 2019, which has further increased the excise differential for tobacco products between Kenya and Uganda," BAT said in response to queries from Business Daily.
"We are now seeing significant volumes of illicit cigarette products coming across the Ugandan border," the company added.
Some of the affected brands include Sportsman King Size, Rothmans Blue, Embassy, and Rooster, with prices ranging from Sh5 to Sh15 more per packet.
It is worth noting that the prices provided by BAT are only guides, and consumers may see even higher final prices at the shops.
