Mastermind’s Rocket brand is still retailing at Sh90 per pack despite the Finance Act 2019 raising the excise duty charged on cigarettes by 14.1 percent effective last November.
The firm, which was founded by the late tycoon Wilfred Murungi, is also selling a pack of Supermatch at Sh115.
Mastermind, which was reportedly in talks to be acquired by Philip Morris International Inc last year, declined to comment on the matter.
Mastermind Tobacco is yet to raise the prices of its cigarettes even as BAT Kenya #ticker:BAT increased prices of nearly all its products by up to Sh15 per pack earlier this month citing higher taxes.
A spot check by the Business Daily in Nairobi revealed that Mastermind’s Rocket brand is still retailing at Sh90 per pack despite the Finance Act 2019 raising the excise duty charged on cigarettes by 14.1 percent effective last November.
The firm, which was founded by the late tycoon Wilfred Murungi, is also selling a pack of Supermatch at Sh115.
“I have not received a new price list from Mastermind Tobacco. We are still selling their products at the old price,” a retailer told the Business Daily.
Mastermind, which was reportedly in talks to be acquired by Philip Morris International Inc last year, declined to comment on the matter. It remains to be seen whether the company will follow BAT in raising its prices. BAT’s price increase took effect on January 2 and the firm said it was responding to higher taxes on its products.
The levy per mille (thousand sticks) on filtered cigarettes rose to Sh3,157 from the previous Sh2,765. The tax on cigarettes without filters jumped to Sh2,272 from Sh1,990 per mille.
The Nairobi Securities Exchange-listed firm said the higher taxes have made cigarettes made in Kenya expensive, adding that this has, in turn, fuelled smuggling of cheap products from neighbouring countries.
Under the new changes by BAT, Sportsman King Size, previously retailing at Sh175 per packet, is now selling at Sh190 while the price of Rothmans Blue has risen from Sh175 to Sh190 a packet.
Prices of the Embassy brands have risen by Sh10 to Sh260 per pack. Rooster, the low-end brand, has seen its price jump by Sh5 to Sh130 per packet. BAT said the prices are only guides and that consumers may see even higher final prices at the shops.
“It is worth noting that what we provide as a manufacturer are recommended retail prices which only act as a guide and therefore some variations in prices might be witnessed whenever such price adjustments occur,” BAT said in a recent statement to the Business Daily.
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