mburu jeff 
- Tax Evasion: Illicit Cigarettes Cost Kenya Sh 9 Billion annually;
- New research shows that an alarming 37 percent of the cigarette market in Kenya is now illicit;
Kenya’s illicit cigarette trade has soared to a record high, with a recent study by Kantar, an international research company, indicating that one in three cigarettes sold in the country are untaxed.
The finding 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 sh 43.5 million to sh 243.5 million.
This alarming situation calls for drastic multipronged action to seal the loopholes and protect legitimate business in Kenya.
Crispin Achola, British American Tobacco (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 is also undermining the security and livelihoods of thousands of Kenyans in the value chain.
“In response to this recent data and dire situation,BAT Kenya is calling for urgent action by the authorities, to tackle and mitigate the profound implications of illicit trade for both Kenya and the broader region,” said Achola.
This dramatic increase has seen the illicit cigarette market in Kenya move from 27 percent a year ago to an unprecedented 37 percent.
This is causing an estimated loss to the exchequer of approximately sh 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.
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.
Further, Achola noted that every illicit cigarette sold represents an increase in organised crime and a threat to legitimate local businesses and jobs.
“And while BAT Kenya commends the efforts thus far of Kenyan authorities and their regional counterparts to address illicit trade, enhanced action is needed, as we cannot afford to let this dangerous trend continue,” he said.
He emphasized that stakeholders should work together to eliminate this problem and protect the interests of Kenyans.
“Our commitment to addressing this issue is unwavering.The battle against illicit trade is not one that any of us can afford to fight alone.
It requires a united front from all sectors, including government, security forces, private sector, media and the public, to ensure a more secure future for Kenya,” Achola added.
