Why employees at BAT are set to lose their jobs

janet ndila

April 11, 2017 11:41 AM

British American Tobacco (BAT) has announced that it could be forced to scale down its operations in Nairobi.

British American Tobacco

British American Tobacco (BAT) has announced that it could be forced to scale down its local cigarette manufacturing due to unfavorable regulations in the country.

In a statement, BAT stated that increased regulatory uncertainty in the local market was threatening its operations.

“Over the years, we have worked hard at BAT Kenya to ensure that we remain a strategic manufacturing hub for our international group. This has been a significant achievement considering that there are only two other such hubs in Africa.

“We cannot take this status for granted. We are competing with other factories in BAT and to maintain our importance within the group we need a strong domestic market, regulatory predictability and help from government especially in dismantling trade barriers in the region,” the company said in a statement.

In 2015, June 26, BAT promised to continue growing and distributing tobacco in Kenya despite a heavy campaign in the country against smoking.

“We will continue processing tobacco leaf across East Africa at our green leaf threshing plant based in Thika. To do this, we will continue to work with our contracted farmers.

"While we cannot comment on the strategic processes or models employed by other players, as a key player in the manufacturing industry in Kenya, we are confident of our future," the firm’s Head of Legal and Corporate Affairs Simukai Munjanganja said in 2015.

Meanwhile, the treasury has doubled the excise stamp fees for cigarettes, wines, and spirits to Sh2.80 per sticker which now means the retail prices could increase.

janet ndila