British American Tobacco announced yesterday that the illicit trade has grown from 12.4 per cent to 14.1 per cent. The firm’s financial director Sidney Wafula said the trade denies Kenya Revenue Authority Sh2.5 billion annually in tax revenue while the industry loses Sh900 million. Out of the Sh36.5 billion gross revenue announced by BAT as of December 31, 48 per cent was from exports while local revenue accounted for 52 per cent. Apart from illicit trade, consumer pressure was a top challenge affecting BAT as consumers remained cash stretched. Political tension and unrest in DRC Congo and Somaliland, heightened regulations in Mauritius, Uganda and DRC and illicit trade in Uganda posed major export challenges.

Source: The Star February 14, 2019 20:48 UTC