British American Tobacco (BAT) Kenya is eying new export markets, seeking to compensate for a dip in Kenyan sales. The firm targets South Sudan, Madagascar, and Djibouti with cut rag tobacco, cigarettes, and tobacco-free oral nicotine pouches, Lyft.
Kenyan market sales dropped 13.8% to KSh11.6 billion last year on reduced consumption of cigarettes in the wake of regulatory curbs and rising prices following additional taxes.
The National Treasury had raised excise duty on cigarettes by 20% in 2019, followed by a further 4.94% raise last October in line with the average inflation rate for the year ended June 2020.
On the other hand, BAT Kenya export revenues hit KSh13.7 billion last year, representing 54.2% of KSh25.3 billion total revenues, especially due to growth in volumes to Egypt and Sudan.
As Business Daily reports, the revenues as a percentage of total earnings increased to 54.2% last year from 44.3% in 2015, while Kenyan sales dropped to 48.8% from 55.7% over the period.
Listed on the Nairobi Securities Exchange, BAT Kenya is part of the British American Tobacco Group (BAT Group) that manufactures and sells cigarettes, tobacco and other nicotine products. BAT Kenya supplies 15 countries with cigarettes and cut rag tobacco from its Kenyan plant.
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