Illicit cigarette trade cost Kenya Sh47b in five years

Out of all cigarettes consumed in the Kenyan market during 2025, only 55 per cent were compliant. [Courtesy]

Kenya’s formal manufacturing and economic landscape continues to suffer heavy financial blows from the proliferation of contraband products, with illicit cigarettes accounting for a staggering Sh47 billion in lost revenue.

According to an independent research report released by Kantar Insights and commissioned by British American Tobacco (BAT) Kenya, the underground trade has triggered a massive revenue haemorrhage, denying the exchequer approximately Sh10.2 billion in unpaid excise duty and value added tax (VAT) in 2025 alone.