Kenya: BAT Enters Talks With AG Over Law

Source from:  AllAfrica.com 08/24/2010

Nairobi - Listed cigarettes firm British American Tobacco (BAT) is engaged in talks with the Attorney General's office to exempt it in certain aspects of the tobacco law. The company is grappling with the side effects of the Tobacco Control Bill brought into effect in 2008, which has in some cases seen it abandon consumers at their hour of need. "We have petitioned the A-G chambers who are the custodian of the law to allow us engage with the public in some issues," Mr Eric Kiniti, the regulatory affairs manager, told the Daily Nation. Among the areas that the firm wants reprieve includes where there is need for recall of products or alerting the public on illicit cigarettes finding its way into the local market. Currently, the firm barred by the law to conduct any manner of advertising or promotions is finding the going tough rules. In 2008, the government enacted an anti-tobacco law which among other things outlawed smoking in public as well as promoting of tobacco and its by products. As a result, hawk eyed Kenya Tobacco Control Board (KTCB) is always keeping an eye on them. Recently the board raised the alarm when the company partnered with UAP Insurance to provide crop insurance to its contracted farmers in Western parts of the country. This has made it difficult for the company to engage with its consumers on such areas and bears the blame. "Because we have these corporate restrictions in place, we end up looking bad as we are held back even in situations that we could have easily put a notice," says Mr Kiniti. But because the law is too stringent, the cigarette manufacturer is also losing market to illicit products in the market. Statistics shows that about 12 per cent of cigarettes consumed in Kenya are illicit having entered into the country irregularly. Some are those manufactured locally but destined for export markets finding their way back. However it says that it has increased its surveillance across border points and ports working together with the Kenya Revenue Authority to seal the loopholes. Recently the firm announced its trading results which saw its domestic market inch up by only six per cent in 12 months. However, sales in some of its export markets in the region went down affecting the overall growth in business. While manufacturers have all been out of the limelight trying to comply with the regulations, civil society has been watching every step of the way. Determined to win a war that began more than 30 years ago, civil society has teamed up with the board in this endeavour. Enditem