CRIMINAL CAPITALI$M
New report reveals potential $28 million tax discrepancy involving British American Tobacco in Kenya
New research has revealed evidence suggesting British American Tobacco Kenya (BATK) may have avoided or evaded up to $28 million in profit taxes in Kenya
University of Bath
New research has revealed evidence suggesting British American Tobacco Kenya (BATK) may have avoided or evaded up to $28 million in profit taxes in Kenya.
The analysis, written by The Investigative Desk, published by the University of Bath's Tobacco Control Research Group (TCRG), in collaboration with Tax Justice Network Africa, highlights a $93 million discrepancy (KES9.6 billion) in revenue reported by BAT Kenya (BATK) for 2017 and 2018, with no plausible explanation provided by the corporation. This gap could reflect tax avoidance or evasion, raising urgent questions about BATK’s financial practices in the region.
Using six years of BATK’s annual reports, production data supplied to the Kenya Revenue Authority (KRA), government documents and data on cigarette consumption and prices, the report exposes numerous contradictions. These include millions of cigarette packs unaccounted for, leading to revenues and therefore tax that would normally be expected.
Tax and audit experts reviewing the findings called on BATK and the KRA to provide answers.
Leopoldo Parada, Reader in Tax Law at King’s College London, said: “In the absence of a convincing explanation, this looks like tax avoidance and potentially evasion.”
Kennedy Waituika, Director of Audit and Assurance at TradeMark Africa, said: “This report should at least trigger a tax review of BAT. It should be a wake-up call for the KRA.”
A spokesman for BAT Kenya did not provide a credible explanation for the discrepancy but rejected the allegations and, in a statement, said:
“BAT Kenya firmly rejects all the allegations made regarding the discrepancy between its published financial disclosures and data. The company pays all taxes in line with applicable laws.”
Lacking an explanation by the corporation, the report authors have asked the Kenya Revenue Authority (KRA) if they will investigate. The authority has not responded to a request for comment.
Dr Andy Rowell from TCRG said:
“The colonial legacy of profiting from Africa while evading responsibilities continues. It’s time for accountability. If this is happening in Kenya, it begs the question of whether similar practices are occurring in other jurisdictions, including the UK and the US.”
Dr Rob Branston from TCRG said: “The findings of this report reveal a troubling pattern of financial discrepancies that demand urgent investigation. Transnational corporations like BAT Kenya have a duty to pay their fair share of taxes, especially in countries where they profit significantly. This is a stark reminder of the need for stronger regulation and enforcement to prevent companies from exploiting tax systems to the detriment of public resources and development. We hope this report spurs action not just in Kenya, but across the region and beyond.”
Dr Marcel Metze of The Investigative Desk said: “We have been investigating the tax practices of the big transnational tobacco corporations for years now. In our investigations, we keep finding lack of transparency, opaque fiscal structures and consistent tax planning practices which can be labelled as ‘aggressive’. The results of our study raise serious doubt about the correctness of company’s financial reporting and do warrant further investigation by the financial authorities.”
Bob Blackman MP who is the Co-Chair of the APPG on Smoking and Health said:
“This newly published research raises serious questions about British American Tobacco’s activities in Kenya indicating that it may have avoided or evaded paying significant amount of tax. In addition, there remain questions about BAT’s wider activities in Africa, including over potential bribery and surveillance. The Serious Fraud Office should re-open its investigation into BAT in order to examine the latest evidence.”
This report builds on The Investigative Desk and TCRG’s 2020 publication, Big Tobacco, Big Avoidance, which revealed the tax avoidance practices regularly employed by the transnational tobacco companies.
The project was funded jointly by the Tobacco Control Research Group and The Investigative Desk.
Method of Research
Data/statistical analysis
Subject of Research
People
Article Title
Missing Millions
Article Publication Date
10-Feb-2025
COI Statement
The project was funded jointly by the Tobacco Control Research Group and The Investigative Desk.
New ACS study finds menthol flavored cigarette smoking increases mortality risk vs. non-menthol cigarettes
American Cancer Society
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New ACS Study Finds Menthol Flavored Cigarette Smoking Increases Mortality Risk vs. Non-Menthol Cigarettes
view moreCredit: American Cancer Society
In a large, nationwide study led by the American Cancer Society (ACS), researchers found mortality risks for smoking menthol cigarettes were higher than non-menthol cigarettes for death from any cause and cardiovascular diseases, especially heart diseases. Higher risks were evident in individuals who had quit smoking and at high smoking intensities. Black participants currently smoking menthol brands had high increases for some heart diseases with an 88% elevated mortality risk compared to non-menthol cigarettes. The report also showed quitting smoking substantially reduced health risks from both cigarette types. The findings are published today in the journal Tobacco Control.
“Menthol in cigarettes is an established public health threat due to its effect on increasing smoking uptake and reducing smoking cessation,” said Dr. Priti Bandi, scientific director, risk factors and screening research at the American Cancer Society and lead author of the study. “With these results additionally showing unique mortality effects, it’s time for menthol cigarettes to be regulated to help save lives. In the U.S. and globally in many low- and middle-income countries, the share of menthol cigarettes in the market is substantial.”
For the report, researchers followed nearly a million people from the Cancer Prevention Study II, a population-based prospective cohort enrolled in 1982-1983, and observed them for mortality outcomes over six years. All-cause and cause-specific mortality risk was assessed according to baseline smoking status (current, former, never) and menthol flavor status (menthol, non-menthol) of the cigarette brand smoked for the longest period.
Among 73,486 participants reporting menthol brands and 281,680 participants reporting non-menthol brands, there were 4,071 and 20,738 deaths, respectively. Participants currently smoking menthol or non-menthol cigarette brands had similarly high mortality risks compared to never smoking (e.g., death from any cause was about 2 times higher), but quitting substantially reduced the risk of death from both types of cigarettes. Among people who had quit smoking, a history of menthol versus non-menthol smoking was associated with an increased mortality risk of 12% from all causes, 16% from all cardiovascular diseases, 13% from ischemic or coronary artery disease, and 43% from other heart diseases. Among individuals currently smoking, there was no difference in mortality risks for menthol vs. non-menthol cigarettes, except for an elevated risk among those smoking 40 or more cigarettes per day and in Black individuals for some heart diseases.
“Continuing to smoke, whether menthol or non-menthol cigarettes, is the most harmful,” added Bandi. “These findings reiterate that quitting all cigarette types is the only safe option to reduce your risk of disease and dying prematurely.”
“Today’s study proves once again why policymakers need to enact comprehensive policies that help individuals who currently use quit and prevent youth and young adults from becoming addicted to tobacco products,” said Lisa A. Lacasse, president of ACS’s advocacy affiliate, the American Cancer Society Cancer Action Network (ACS CAN). “People who smoke deserve barrier-free access to comprehensive cessation services and support through quitlines, their health care providers, and state and federal programs. ACS CAN will continue to work to increase funding for tobacco prevention and cessation programs, end the sale of menthol cigarettes and all other flavored tobacco products, and enact other proven tobacco control policies, including comprehensive smoke-free laws and regular and significant tax increases on all tobacco products.”
Other ACS researchers contributing to the study include Christina Newton, Zheng Xue, Dr. Samuel Asare, Dr. Minal Patel, Dr. Farhad Islami, Dr. Nigar Nargis, Dr. Alpa Patel, Dr. Ahmedin Jemal, Dr. J. Lee Westmaas, and senior author Ryan Diver.
Additional ACS Resources:
- Menthol Flavored Cigarette Information
- Tobacco Control Research
- Tobacco Cessation
- Cancer Statistics Center
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About the American Cancer Society
The American Cancer Society is a leading cancer-fighting organization with a vision to end cancer as we know it, for everyone. For more than 110 years, we have been improving the lives of people with cancer and their families as the only organization combating cancer through advocacy, research, and patient support. We are committed to ensuring everyone has an opportunity to prevent, detect, treat, and survive cancer. To learn more, visit cancer.org or call our 24/7 helpline at 1-800-227-2345. Connect with us on Facebook, X, and Instagram.
Journal
Tobacco Control
Article Publication Date
13-Feb-2025
