By OMBOKI MONAYO
As Kenyans weigh in on the 2024/25 Finance Bill, the National Taxpayers Association (NTA) is urging the government to raise taxes on tobacco products. The advocacy group argues that this will not only generate additional revenue but also discourage tobacco use, a major public health concern linked to thousands of deaths annually in Kenya.
Consumption of cigarettes and related health complications including lung cancer, chronic obstructive pulmonary disease (COPD), heart disease and hypertension has been found to kill at least an average of 9,000 Kenyans every year.
According to John Thomi of the NTA, higher taxes protect the health pf Kenyans by making the products more expensive.
‘When tax is increased, the affordability of tobacco products decreases and even consumer choices are constrained because tobacco is a luxury or recreational product,” says Mr Thomi.
Research carried out in Europe shows that a 10% increase in cigarette prices can lead to a 4-6% decrease in demand, particularly among low- and middle-income smokers. Data from Kenya itself shows a promising decline in tobacco use from 12% in 2014 to 9% in 2022, which the NTA partly attributes to previous tax hikes.
The current tax structure sees filtered cigarettes taxed at Kes4,067 per 1,000 cigarettes (mille), with the NTA proposing an increase to Kes4,100. Similarly, taxes on unfiltered cigarettes would rise from Kes2,926 to Kes4,100 per mille. Mr Thomi emphasizes that higher taxes make tobacco products less affordable, effectively reducing consumer choice for these “luxury or recreational” goods.
John Muchangi, a veteran health and science journalist, highlights the addictive nature of tobacco products, suggesting that pricing them out of reach remains the most effective way to control consumption. While supporting the increase in taxation, he dismisses arguments from the tobacco industry that high taxes will only encourage smuggling, stating that tackling smuggling is a separate enforcement issue.
“Addiction transforms tobacco into a must-have product. Pricing it out of reach remains the most effective way to reduce and control its consumption,” he says. “Eliminating the flow of illicit tobacco products into the country is a law enforcement challenge that the government should squarely tackle,” adds the editor.
Kenya’s journey towards tobacco control has not been smooth. The country ratified the World Health Organization’s Framework Convention on Tobacco Control (FCTC) in 2005, but the implementation of tobacco control regulations faced legal battles, eventually being enacted in 2014. These regulations require graphic health warnings on packaging, designated smoking areas, and public health campaigns to raise awareness of the dangers of smoking.
The FCTC explicitly prohibits tobacco industry involvement in tobacco control policymaking. However, there have been instances where the industry has lobbied and influenced key decision-makers, potentially weakening these policies. This was evident in 2004 when the tobacco industry attempted to dilute a proposed Tobacco Control Bill by renaming it and seeking influence on the tobacco control committee. Thankfully, public pressure exposed these efforts, leading to the passage of a comprehensive Tobacco Control Act in 2007.
The NTA is concerned that the government’s proposed tax increases may not be enough. They argue that the industry can absorb small price hikes as overhead costs or by transferring them to other products. It proposes annual tax hikes of 10-15% to account for population growth and prevent the industry from comfortably mitigating the impact of the increases.
A new challenge has emerged in the form of non-combustible tobacco products like vapes and flavored pouches, targeted towards young people. Speaking during a May 28, 2024 press briefing, Ms Mary Muthoni, who is the Principal Secretary in the Ministry of Health, acknowledged this growing concern and revealed that plans were underway to raise awareness about the dangers of these products alongside traditional cigarettes during World No Tobacco Day.
“The rise of attractively packaged novel nicotine products like vapes and flavored pouches is attracting young people despite lacking evidence of being harmless alternatives. The Ministry of Health plans to use World No Tobacco Day to raise awareness of these dangers alongside traditional cigarettes,” said Ms Muthoni..
NTA however feels that more can be done, beyond the glitzy and high-powered public service announcement on tobacco’s threat to human health. It is criticizing the “extremely low taxes” on these new products, with liquid nicotine taxed at a mere Kes70 per mille compared to the price of Kes1,500 per vape pen refill. They propose raising taxes on these products to Kes5-10 per pouch and including them in the new eco tax to account for their environmental impact.
Mr Thomi concludes by emphasizing the urgency of action. He is warning that these “new generation products” can be a gateway to even more dangerous substances and urges swift measures to protect young Kenyans from addiction.
“The success of our combined efforts as health advocates and public health experts to reduce tobacco use hinges on a multi-pronged approach that combines effective taxation with public health awareness campaigns to create a generation free from the dangers of tobacco use,” he asserts.
