Tobacco.org

• Contraband cigarettes swamp EAC 

Lack of co-operations from authorities in dealing with culprits is weighing down on the industry, players claim. According to information available to the Nation, several raids have been conducted and suspects apprehended.

However, the prosecutions have failed the fight, leading to loss in revenue by the authorities as in most cases suspects walk away free. It is estimated that Kenya looses billions of shillings annually to the trade of illegal cigarettes. Independent sources say that the scheme is a cash cow and governments and companies are suffering the consequences.

In a recent article on smuggling of cigarettes in the East African Community, Mr Enoch Walugembe of BAT said companies loose about Sh225 million while traders loose about Sh150 million annually. “This about 25 per cent of the cigarette consumption causing the loss of Sh7.5 billion a year in tobacco taxes,” said Mr Walugembe.

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