Cigarette makers face uncertain future as regulation screws tighten

A woman looks at some of the tobacco graphic posters on display at the To Mboya Monument on Moi Avenue in Nairobi in January. FILE PHOTO |

What you need to know:

  • The recent decision by Court of Appeal to dismiss a plea from cigarette maker British American Tobacco (BAT) Kenya and uphold the new Tobacco Control Regulations has received wild cheers from anti-smoking campaigners.
  • BAT Kenya had argued the stringent rules may encourage illicit trade in tobacco products
  • With the looming implementation of the new rules, experts say, the laws will have far-reaching effects on the balance sheet of cigarette companies.

The recent decision by Court of Appeal to dismiss a plea from cigarette maker British American Tobacco (BAT) Kenya and uphold the new Tobacco Control Regulations has received wild cheers from anti-smoking campaigners.

The verdict has however sent shock waves among tobacco processors who experts say now face an uncertain economic future as regulatory screws tighten against their operations.

Following the ruling, the government has hinted it will no longer waste time in enforcing the tobacco regulations, which were initially set to come into effect last September.

'Great day'

“We are very excited, it has taken 10 years to get the regulations through and this is a great day for the country.

"Public health has won over commercial interests! We will now be calling on the Ministry of Health to step up implementation to ensure that the gains offered by the Judiciary are enjoyed by Kenyans,” the International Institute for Legislative Affairs chief executive Emma Wanyonyi said after the verdict.

BAT Kenya had argued the stringent rules may encourage illicit trade in tobacco products, and thus hurting the health of Kenyans.

The company area head of legal and external affairs Simukai Munjanganya had earlier said while the cigarette maker is not opposed to regulation, an “unbalanced” tobacco policy would go against its intended aims.

“We are not opposed to regulation. We support regulation that is balanced and evidence-based — actually helping to achieve the intended public health objectives.

“Regulation that does not meet this criteria could have unintended consequences such as stimulating illicit trade and harassment of members of the public and traders,” said Mr Munjanganya.

Far-reaching effects

With the looming implementation of the new rules, experts say, the laws will have far-reaching effects on the balance sheet of cigarette companies.

The rules demand cigarette makers to put graphic health warnings on packs and require firms to disclose ingredients used in their manufacture.

Additionally, they call for smoke-free environments in streets, walkways, verandas adjacent to public places, as well as disclosure of annual tobacco sales and other industry disclosures.

They, at the same time, decree limiting interaction between the tobacco industry and public health officials and other public officers.

They also outlaw sale of cigarettes as single sticks. It is expected that vendors who often sell cigarettes as single sticks will be worst affected.

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