69É«ÇéƬ

Analysis by the with support from the Tobacco Control 69É«ÇéƬ Group and , has identified significant discrepancies in the revenue statements of British American Tobacco’s subsidiary in Kenya (BATK).

The discrepancies of up to KES 9.6 billion (USD 93 million) were found in BATK’s 2017 and 2018 revenue statements. These suggest there could be a mismatch in the tax that BATK declares and what it pays by up to $28 million USD.

Tobacco products continue to kill over , including . The tobacco market in Kenya, and indeed most of Africa, is BAT carries out its operations in Kenya through its subsidiary, British American Tobacco Kenya (BATK). to reduce harm, contribute to the economy, and pay its fair share of tax – but these latest findings seem to suggest otherwise.

These findings were discovered through analysis of six years of BATK’s annual reports and comparison of these to production data the company supplied to the Kenya Revenue Authority (KRA), internal government documents, and data on cigarette consumption and prices. This analysis identified a clear difference in the millions between the amount of cigarettes the company produced and how many it reported were sold.

Speaking on the findings, , Investigations Lead at the Tobacco Control 69É«ÇéƬ Group, noted:

Tobacco industry tax exploitation and avoidance in Africa is nothing new. These latest findings once again show an inconsistency between what tobacco companies declare and what they actually do. We call on both the Kenyan authorities and the British Serious Fraud Office to reopen their respective investigations into BAT’s activities in Kenya.

In this new report, a detailed cross-examination of the company’s publicly stated financial records, internal data of the Kenya Revenue Authority (KRA), and information from the World Health Organisation (WHO) reveals numerous discrepancies in BATK’s statements. There are also details on the cost of BATK to society including the exploitation of farmers, healthcare costs, and loss of productivity due to the harms of tobacco smoking. In addition, the report describes BAT’s operations in Kenya including corporate structure and examples of tax avoidance and evasion elsewhere.

This investigation builds on previous work carried out by the Tobacco Control 69É«ÇéƬ Group on this theme including this report from 2020, and multi-year investigation into BAT’s questionable payments and espionage across Africa.

, expert on tobacco taxation, comments:

Tax is one of the most effective measures for addressing the tobacco epidemic – taxing tobacco products can cut smoking rates, save lives, and raise government revenue. The money made from selling products in Kenya should remain in Kenya to help the country deal with the harms of smoking, it should not be lining the pockets of tobacco industry executives. There needs to be increased scrutiny on the tax reporting of transactional tobacco companies.

Update as of 24 February 2025:

On 19 February 2025 the Kenya Revenue Authority issued . They stated that they take the allegations in this report seriously and are reviewing them. They note that they will take appropriate action following this review and appreciate the role of independent research organisations in promoting transparency and accountability.

On 22 February 2025 it was announced that two senior members of British American Tobacco Kenya's Board of Directors had resigned. referenced these changes as coming shortly after the release of this report and the subsequent investigation by the Kenya Revenue Authority.