Tobacco in Kenya
Euromonitor International's Tobacco in Kenya market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Buy online to access strategic market analysis and an interactive statistical database of duty paid retail volume and value sales, illicit trade volume, company and brand shares, pricing, distribution and production data.
Tables: 57 | Publication date: Oct 2009
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Executive summary
Smoking ban hits Kenya
The long-awaited Tobacco Control Bill, originally planned for 1999, was finally passed by the Kenyan government on August 2007 and assented to by President Mwai Kibaki in November 2007. The bill took effect in July 2008, eight months after being made law. The law has had a groundbreaking effect on the industry, with several of its provisions requiring major adjustments to the operations of industry players.
The local authorities in major cities implemented proposals to outlaw smoking in public places. In the cities of Nairobi, Mombasa and Kisumu, as well as larger towns country wide, measures were taken over the year to ban public smoking, with arrests and fines being imposed to enforce the law. These measures were principally Ministry of Health and local government initiatives. However, there was major controversy later in the year following the implementation of the 2007 Tobacco Control Act. The Minister for Local Government overturned the ban on public smoking, citing a conflict between the Tobacco Control Act and local authority by-laws that banned public smoking.
Price increments boost value sales
There were increments in the price of cigarettes over the year, primarily due to tax increases levied on manufacturers. This led to a consumer shift toward less expensive brands, such as Safari, Rooster and Rockets. Manufacturers basically passed the increase in excise tax on to the consumer.
Manufacturers still rely on political ties
According to a number of studies, domestic and multinational manufacturers enjoy extensive high-level political connections in Kenya, including close relationships with successive Kenyan legislators. This enables them to influence public policy and health legislation. It is also claimed that this connection enables them to convince the government to pass legislation drafted by a leading manufacturer, compelling farmers to sell tobacco to it, rather than its competitor. This suggests that manufacturers manipulate tobacco farming as a political issue. This influence extends to the legislation of the 2007 Tobacco Control Act. Some commentators have suggested that the recent overturning of the ban on public smoking by the Local Government Ministry may have political undertones.
Plight of Kenyan tobacco farmers
Kenyan tobacco farmers are struggling under the burden of credit extended to them by manufacturers. The farmers believe that the inputs given to them as a loan in the form of seeds, pesticides and fertilisers tend to be overpriced. Farmers are losing money once deductions are made for the loan, labour, fuel and costs. This situation did not improve over the review period. The political unrest at the beginning of the year also contributed to the situation, making it very difficult for farmers to meet their obligations.
Smuggling in the East African Community
Smuggling is rampant in the East African Community. According to a report compiled by the Kenyan Institute of Public Policy Research and Analysis (KIPPRA) and the Economic Policy and Research Center (EPRC) in 2005, smuggling costs governments in East Africa more than US$25 million annually. It is estimated that illicit tobacco trade accounts for between 10-15% of total national volume consumption.
Contraband products are usually destined for export, but are later smuggled back into the countries where they were manufactured or illegally diverted to their intended destinations. Smuggled products can be easily identified because they do not normally carry tax stamps of the country in which they are being sold and may not carry the required health warning.
Table of contents
TOBACCO IN KENYA : MARKET INSIGHT
EXECUTIVE SUMMARY
Smoking ban hits Kenya
Price increments boost value sales
Manufacturers still rely on political ties
Plight of Kenyan tobacco farmers
Smuggling in the East African Community
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2003-2008
Table 2 Number of Smokers by Gender 2003-2008
Death by Cause
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative overview/FCTC ratification
Minimum Legal Smoking Age
Tar Levels
Health Warnings
Duty Paid Packet Marks
Advertising & Sponsorship
Smoking in Public Places
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies: Cigarettes
Table 4 Average Cigarette Pack Price Breakdown: Brand Example
Production/Imports/Exports
Table 5 Trade Statistics – Cigarettes
MARKET INDICATORS
Table 6 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 7 Sales of Tobacco by Sector: Volume 2003-2008
Table 8 Sales of Tobacco by Sector: Value 2003-2008
Table 9 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 10 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 11 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 12 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 13 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 14 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 1 Summary - Research Sources
SMOKELESS TOBACCO
Headlines
BRITISH AMERICAN TOBACCO KENYA LTD
Strategic Direction
Key Facts
Summary 2 Summary - British American Tobacco Kenya Ltd: Operational Indicators
Summary 3 Summary - British American Tobacco Kenya Ltd: Key Facts
Company Background
Production
Summary 4 Summary - British American Tobacco Kenya Ltd: Production Statistics 2008
Competitive Positioning
Summary 5 Summary - British American Tobacco Kenya Ltd: Competitive Position 2008
LOCAL COMPANY PROFILES - KENYA
BRITISH AMERICAN TOBACCO KENYA LTD - TOBACCO - KENYA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Summary - British American Tobacco Kenya Ltd: Operational Indicators
Summary 7 Summary - British American Tobacco Kenya Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 8 Summary - British American Tobacco Kenya Ltd: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 9 Summary - British American Tobacco Kenya Ltd: Competitive Position 2008
MASTERMIND TOBACCO (KENYA) LTD - TOBACCO - KENYA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Summary - Mastermind Tobacco (Kenya) Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 11 Summary - Mastermind Tobacco (Kenya) Ltd: Competitive Position 2008
CIGARETTES IN KENYA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
Summary 12 Summary - Cigarettes - New Product Launches 2008
PROSPECTS
SECTOR BACKGROUND
Cigarettes: Illicit trade
Outlook
CIGARETTES: PRICE BANDS
Summary 13 Summary - Cigarette Price Band Definitions
Outlook
CIGARETTES: MENTHOL/STANDARD
CIGARETTES: FILTER/NON-FILTER
CIGARETTES: CARBON/STANDARD FILTER
CIGARETTES: FILTER LENGTH
CIGARETTES: SLIMS/SUPERSLIMS VS REGULAR
CIGARETTES: PACK SIZE
CIGARETTES: PACK TYPE
SECTOR DATA
Table 15 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 16 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 17 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 18 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 19 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 20 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 21 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 22 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 23 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 24 Sales of Cigarettes by Length 2003-2008
Table 25 Sales of Cigarettes by Regular/Slim 2006-2008
Table 26 Sales of Cigarettes by Pack Size 2003-2008
Table 27 Sales of Cigarettes by Pack Type 2003-2008
Table 28 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 29 Cigarettes Company Shares 2004-2008
Table 30 Cigarettes Brand Shares 2005-2008
Table 31 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 32 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 33 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 34 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 35 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 36 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 37 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 38 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 39 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 40 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 41 Forecast Sales of Cigarettes by Length 2008-2013
Table 42 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 43 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 44 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS IN KENYA
HEADLINES
SMOKING TOBACCO IN KENYA
HEADLINES