{
  "id": 18280858,
  "title": "Illicit cigarette trade costs Kenya Sh47bn in lost tax revenue, study finds",
  "url": "https://urgent.news/2026/11/05/illicit-cigarette-trade-costs-kenya-sh47bn-in-lost-tax-revenue-study",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-05T08:46:12.000Z",
  "source": {
    "name": "Capital FM Kenya",
    "slug": "capital-fm-kenya",
    "url": "https://capitalfm.africa/illicit-cigarette-trade-costs-kenya-sh47bn-in-lost-tax-revenue-study-finds/"
  },
  "original_language": "en",
  "account": "Nairobi, Kenya - A recent study commissioned by BAT Kenya reveals that illicit cigarette trade in the country costs the government approximately Sh47 billion in lost tax revenue between 2021 and 2025. The study, conducted by Kantar, found that illicit cigarettes make up 45.1% of total cigarette consumption in Kenya in 2025. The research defines illicit cigarettes as products without paid taxes or non-compliance with regulatory requirements. The lost revenue could have funded initiatives such as the construction of about 48,000 affordable houses or the purchase of 19 million bags of subsidised fertiliser. Rising excise taxes have negatively impacted the legal cigarette industry, leading to a 55% increase in cigarette excise duty between 2018 and 2022 and a Sh1 billion decline in excise revenue from the legal industry over the same period. The illicit trade has also resulted in job losses, with 4,700 jobs potentially affected in the legal tobacco value chain between 2022 and 2025, and a Sh37.7 billion reduction in the industry's contribution to Kenya's Gross Domestic Product. BAT Kenya's Managing Director, Sidney Wafula, called for stronger government action to combat illicit trade, including enhanced border controls, faster investigations and prosecutions, and stricter penalties. He also advocated for a better track-and-trace system to improve oversight of tobacco products throughout the supply chain. Wafula warned that illicit trade could undermine legitimate businesses, government revenue, employment, and expose consumers to products outside established regulatory controls. He emphasized that BAT Kenya remains committed to collaborating with government agencies to combat illicit trade and protect legitimate enterprises.",
  "summary": "The research estimates that the lost revenue could have funded key government programmes, including the construction of about 48,000 affordable houses, the purchase of 19 million bags of subsidised fertiliser or 12 million bags of maize.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "BusinessDay Nigeria",
        "title": "Jaiz Bank’s nine-month profit edges up 1.8% as financing income offsets rising costs",
        "url": "https://urgent.news/2026/11/05/jaiz-banks-nine-month-profit-edges-up-1-8-as-financing-income-offsets",
        "published": "2026-11-05T05:41:33.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}