In a price increament that took part effect in January 2, BAT raised the prices of nearly all of its cigarettes by up to Sh15 per packet. BAT says changes are meant to pass increased taxes to consumers.
The levy per mille (thousand sticks) on filtered cigarettes rose to Sh3,157 from the previous Sh2,765. The tax on cigarettes without filters jumped to Sh2,272 from Sh1,990 per mille.
“These new prices have been largely driven by the enactment of the Finance Act 2019, which has further increased the excise differential for tobacco products between Kenya and Uganda. We are now seeing significant volumes of illicit cigarette products coming across the Ugandan border,” BAT said in response to queries from the Business Daily.
Sportsman King Size, previously retailing at Sh175 per packet, is now selling at Sh190 while the price of Rothmans Blue has risen from Sh175 to Sh190 a packet.
Prices of the Embassy brands have risen by Sh10 to Sh260 per pack. Rooster, the low-end brand, has seen its price jump by Sh5 to Sh130 per packet. BAT says the prices are only guides and that consumers may see even higher final prices at the shops.
“It is worth noting that what we provide as a manufacturer are recommended retail prices which only act as a guide and therefore some variations in prices might be witnessed whenever such prices adjustments occur,” BAT said.
This comes barely a few months after the listed tobacco manufacturer reported a 25.5 percent rise in net earnings in its 2019 half-year to Sh2.53 billion, buoyed by a 10 percent increase in gross revenue to Sh19.2 billion.
