Tobacco in Kenya

Tobacco records current value growth in 2017

Despite increased regulations, stock-outs and a sustained anti-smoking campaign by civil groups, tobacco in Kenya continued to record strong current value growth in 2017. Growth was due to higher product prices, as well as an aspirational middle class with more disposable income focusing on products such as premium cigarettes and cigars.

Low volume growth due to increased regulation

Tobacco products in general registered low retail volume growth in 2017, attributable to Tobacco Control Regulations that require a 2% levy on the value of manufactured or imported tobacco products that is then assigned to the Tobacco Control Fund. This meant that the burden of the levy was partially transferred to consumers, and this resulted in higher prices hence less affordability.

British American Tobacco maintains its leadership

The international company, British American Tobacco, maintained its position as the leading player in tobacco through its local subsidiary in 2017. This was mainly because the group has a strong combined portfolio that has brand heritage, which has been developed through a long-term presence in Kenyan tobacco sales, hence driving value and volume growth.

Traditional retailers continue to lead within tobacco

Traditional retail outlets, specifically street vendors and independent small grocers, remained the main distribution channels for tobacco in Kenya in 2017; however, most retailers, especially street vendors and independent small grocers, continued to sell single sticks of cigarettes despite this being illegal. These distribution outlets remained popular due to their prevalence in both urban and rural areas, ensuring these products are widely available and competitively priced.

Retail volume decline expected over the forecast period

Over the forecast period, price increases are expected due to government actions through the Tobacco Control Act 2007 (Revised Edition 2012), which regulates the smoking of pipes, cigarettes and cigars in public, as well as controlling advertising. The Tobacco Control Regulation, 2014, requires cigarette makers to put graphic health warnings on packs, no sales of cigarettes as single sticks and smoking allowed only in public smoking zones.

Files are delivered directly into your account within a few minutes of purchase.