Market News

Tobacco industry leads KRA excise stamp sales

The British American Tobacco plant in Nairobi. FILE PHOTO | NMG
The British American Tobacco plant in Nairobi. FILE PHOTO | NMG 

The tobacco industry accounted for half of the total excise stamps issued last year to emerge the biggest sales stream for the taxman ahead of spirits and beer, latest data from Kenya Revenue Authority (KRA) shows.

Cigarettes accounted for 328.79 million excise stamps or 48 per cent of stickers issued in the period to June 2016, out of the 688.75 million sold.

This is the first time the KRA has publicly given data on the breakdown of excise stamps for each category of goods, offering investors and consumers are rare peek into the consumption of excisable goods.

In total, the KRA raked in Sh1.03 billion from excise stamp fees in the year to June 2016, from Sh890.2 million a year earlier and Sh701.6 million in 2014. This means cigarette makers such as British American Tobacco Kenya #ticker:BAT and Mastermind Tobacco paid out Sh493.19 million in stamp duty fees, given that each excise stamp was sold at a flat rate of Sh1.50 in the period under review.