BAT raises cigarette prices on higher taxes in Kenya
BAT tobacco price increase is a great achievement for tobacco control in Kenya and Africa in general. The increment results in higher taxes impacting on consumer affordability. The WHO proposes at least 70% tax share of on consumer price https://www.who.int/tobacco/economics/taxation/en/index1.html, one of the strategies effective in combating tobacco consumption and the initiation by new users. This will positively influence public health as fewer individuals are exposed to toxins produced by the product. According to Otieno, the price increase took effect as of 02 January 2020. However, the Finance Act 2019 raised excise duty charged on cigarettes by 14.1% from November 2019. In response to this amendment, one of the Nairobi listed firms state that this has fueled illegal activity from the neighboring countries. The industry may use the opportunity to release illicit products into the market and should be watched.
See the origional article by Bonface Otieno in the Business Daily here.