KSh47 billion lost in revenue to illicit cigarette trade in Kenya

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KSh47 billion lost in revenue to illicit cigarette trade in Kenya

Kenya has lost an estimated KSh 47 billion in lost excise duty and VAT revenue between 2021 and 2025, according to new research by global research firm Kantar.

The study estimates that illicit cigarettes accounted for 45.1% of total cigarette consumption in Kenya in 2025.

This means almost one in every two cigarettes sold in Kenya was estimated to be illicit. 

Illicit cigarettes were defined as those on which applicable taxes have not been paid and which do not comply with other regulatory requirements.

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