KDRTV News – Nairobi: Kenya is grappling with a surging black market for cigarettes, a crisis now accounting for a staggering 37 percent of the nation’s tobacco trade. This alarming rise, up from 27 percent just a year ago, is costing the government an estimated Sh9 billion annually in lost tax revenue. The illicit trade undermines essential public services and national development programs .
The scale of the problem is stressed by data from the Kenya Revenue Authority (KRA), which reported a significant increase in the declared worth of illicit goods entering Kenya, rising by Sh43.5 million to hit Sh243.5 million in 2024. Crispin Achola, Managing Director of British American Tobacco (BAT) Kenya, voiced serious alarm, stating, “The illicit trade in cigarettes is not only an economic issue – it is a matter of national security and public interest. Every illicit cigarette sold represents an increase in organised crime and a threat to legitimate local businesses and jobs. It is critical that all stakeholders work together to eliminate this problem and protect the interests of Kenyans.”
Beyond direct revenue loss, the broader economic impact of tobacco use in Kenya is substantial. Tobacco-related illnesses impose an annual financial burden ranging from US$544.74 million to US$756.22 million . For every dollar generated by the tobacco industry, the Kenyan economy loses between US$2.2 and US$3 due to healthcare expenses and lost productivity. This stark reality underscores the need for robust tobacco control measures, including effective taxation policies.
While Kenya has previously seen success in reducing illicit trade through measures like the Excise Goods Management System, which saw illicit trade drop from 15% to 5% by 2016 , the current surge demands renewed and stronger collaboration. Experts advocate for reevaluating border oversight, enhancing crackdown mechanisms, and implementing workable tax regimes that deter illicit trade without inadvertently fueling it. A united front involving government bodies, law enforcement, civil society, and the media is essential to close enforcement loopholes and safeguard Kenya’s economic and public health future.
