BAT: Ministry withholding vital details on Tobacco Act

British American Tobacco (BAT) has accused the Ministry of Health of refusing to provide crucial information on the Tobacco Control Act, saying this has hampered its production.

In an application before High Court Judge Mumbi Ngugi, the cigarette maker claims it could not comply with some of the regulations due to lack of the documents it was seeking from the James Macharia-led ministry.

"The petitioner (BAT) is unable to start making preparations for the printing of health warnings because it does not know what exactly is required," BAT's Lawyer Walter Amoko told the court.

According to the company, the Ministry had agreed to pass on the information in a week's time but later recanted its position. The court heard that the Ministry responded by saying it could not address the issue as it was before the National Assembly.

"As you are aware, the Regulations were tabled in Parliament on December 11, 2014 and thus the regulations are a matter that has been seized by the National Assembly and the ministry has no further role to play but await the report from Parliament," the response by the Cabinet Secretary and submitted to the court read.

The company is seeking to have the Act declared unconstitutional and that it is contravening its rights.

"The Tobacco Control Act requires the manufacturers to contribute 2 per cent of the value of tobacco products manufactured or imported to the Tobacco Control Fund. It is discriminatory, unfair, unreasonable, oppressive and punitive to the tobacco industry," BAT argued in its court papers.

Temporary orders

The court heard the requirements in the new law will cripple the industry. BAT wants the court to issue temporary orders before the case is heard and determined. It also argued the law as it is also bars it from interacting with the public and the tobacco industry players.

The multinational company is of the view that some of the provisions are unlikely to succeed in addressing public health objectives and will edge out legitimate players in favour of expansion of the illegal black market.

The legitimate traditional cigarettes have witnessed increased competition from counterfeits since last year due to the high cost of unit prices, high inflation and increased cost of living. The case will be heard on May 6.