Kenya: BAT Unhappy with Rivals over Tobacco Act

Source from:  The Nation 04/29/2010

Nairobi - Cigarette maker, British American Tobacco Kenya, has raised concern over its competitors' non-compliance with the Tobacco Control Act, saying it creates an uneven playing field. The company says it has invested Sh100 million to ensure timely compliance, but lack of full conformity by the industry is still evident in the market, with some competitors still promoting their products. The firm is calling for equitable enforcement of the Act, which seeks to limit production, manufacture, sale, labelling, advertising and promotion of cigarettes. "We are engaging with the authorities on the issue of equitable enforcement of tobacco regulation, which is critical to our sustainability," said Mr Gary Fagan, BAT Kenya managing director,"Misinterpretation and inequitable enforcement of the Act has resulted in uncertainty in the market and undue harassment of the traders by law enforcement officers," he added while speaking during the company's AGM held at the Intercontinental Hotel on Wednesday. According to its financial report, the overall cigarette market declined by more than 5 per cent, partly due to increase in counterfeit products in the market. With the illicit trade estimated to account for 12 per cent of the cigarette market, BAT is also proposing firmer action to curb the trade of tobacco, saying the current penalties are not sufficient. The cigarette manufacturer also appreciated the Treasury's decision not to increase excise duty in the last budget. BAT shareholders approved a Sh14.75 per share as annual dividends. Enditem