Anti-tobacco advocates are urging the Kenyan government to close regulatory loopholes that have allowed the tobacco industry to introduce novel products such as e-cigarettes and nicotine pouches without facing adequate taxation or oversight.
According to Experts Kenya’s cigarette taxation is insufficient. As of 2023, the tax on a pack of 20 cigarettes is about one-third of its retail price, far below the WHO’s recommendation that taxes should make up 70-75percent of the retail price to effectively reduce consumption.
The call comes as public health experts highlight the urgent need to increase tobacco taxes, particularly on emerging products that are gaining popularity among youth.
Speaking at the 3rd Annual Conference on Tobacco Taxation in Nairobi, hosted by the National Taxpayers Association, Celine Awuor, CEO of the International Institute of Legislative Affairs (IILA), stressed the importance of strong tax policies to reduce tobacco consumption.
“In the country we are having challenges, especially with the taxation of these new products, particularly oral nicotine pouches and electronic cigarettes, whose tax regime is still not strong enough,” Awuor said.
Awuor noted that while traditional cigarettes are subjected to taxes, novel products like smokeless tobacco and nicotine pouches remain significantly undertaxed. This discrepancy has created a loophole for the tobacco industry, which is exploiting lower tax rates on these products, despite their comparable usage rates to traditional cigarettes, especially among the youth.
Tobacco control advocates have long pointed to taxation as the most effective tool in reducing tobacco use, particularly among young people.
“Uniform tax is the best practice globally,” Awuor said adding that “the tiered tax system adopted in 2017 has weakened Kenya’s ability to use taxes as a control measure. Under this system, filtered and non-filtered cigarettes, as well as other tobacco products, are taxed at different rates, reducing its effectiveness.”
Awuor advocated for a uniform tax system proposing that taxation be pegged to inflation to maintain its impact.
Cyprian Mostert, from the Agha Khan University’s Brain and Mind Institute, called for a more stringent and uniformed continental tax approach.
“Kenya and other African countries’ should develop a social justice tax framework to hold the tobacco industry accountable for its public health impacts,” Mostert said adding that, “Uniform tax systems work best, African continent needs uniform price for cigarettes because taxation mismatch in sister countries can undermine taxation efforts.”
He called for Kenya to eliminate the tiered tax system, raise taxes on nicotine pouches, and regulate e-liquids, which are often under-regulated.
Joel Gitali, Chairperson of the Kenya Tobacco Control Alliance, suggested that Kenya should adopt a more progressive approach like Uganda, which has banned nicotine pouches and imposed higher tobacco taxes.
“We are keen on reviewing the Tobacco Control Act and other policies to ensure that all emerging products like e-cigarettes and nicotine pouches are adequately covered by law,” Gitali said.
Kenya’s current tobacco tax policies score poorly when compared to international standards. In 2021, the country scored just 0.88 out of 5 on the Tobacconomics scorecard, which ranks tax effectiveness globally.
Advocates argue that stronger taxation would not only reduce consumption but also generate additional government revenue, which could be used to fund public health campaigns and research.
Dr. Naomi Shaban, Chairperson of the Tobacco Control Board, acknowledged that Kenya’s Tobacco Control Act, enacted in 2007, needs to be updated to reflect the emergence of new products. “The law talks about tobacco products, but it is not focused on the new and emerging products. We are in the process of actually re-looking at the law to fill in gaps and align it with the new Constitution,” Dr. Shaban said.
Dr. Andrew Toro, head of the Drug and Substance Abuse Control Division at the Ministry of Health, affirmed the ministry’s commitment to escalating tobacco taxes and aligning the legal framework with new products.
“Excise taxes serve as both a deterrent and a source of funding for public health campaigns,” he said, noting that new graphic health warnings on cigarette packaging would also soon be introduced to raise awareness of smoking’s dangers.
As tobacco consumption rises in Kenya, particularly among young people, experts and advocates are pressing for immediate reforms. “We must act now,” Gitali said. “Novel and emerging tobacco products should be banned, and we must close the loopholes that the tobacco industry is exploiting.”
With 44 of the 47 sub-Saharan African countries being parties to the World Health Organization’s Framework Convention on Tobacco Control (FCTC), tobacco control advocates believe that Africa must strengthen its tax policies to curb the spread of tobacco use, especially as the continent’s young population remains vulnerable to targeted marketing by the tobacco industry.
