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Mulika BAT Kenya – Uncovering a Tax Discrepancy
Gerald Kombo
March 13, 2025
On March 13, 2025, the Park Inn by Radisson in Nairobi’s Westlands hosted a Stakeholder Meeting organized by the National Taxpayers Association (NTA), Tax Justice Network Africa (TJNA), and tobacco control advocates to discuss findings from the British American Tobacco Kenya (BAT Kenya) Illicit Financial Flows (IFFs) Report. The report alleges that BAT Kenya underreported sales by $94 million in 2017-2018, resulting in a tax shortfall of KES 3.6 billion ($28 million). The absence of representatives from the Kenya Revenue Authority (KRA), the Ministry of Health, and the Tobacco Control Board raised concerns about the government’s oversight of corporate tax practices.
Three key figures provided insights at the event:
Elvina Majiwa, a Pan-African tobacco control and health promotion champion, known for her advocacy, pushing for stronger public health protections and accountability in line with the Tobacco Control Act
John Thomi, a researcher with Tax Justice Network Africa (TJNA) and co-author of the report.
Rachel Kitonyo Devotsu, a leading tobacco control advocate and recipient of the 2020 WHO World No Tobacco Day Award for her work across Sub-Saharan Africa.
Their perspectives reinforce the call to “mulika BAT”—expose BAT Kenya’s practices for greater accountability.
Elvina Majiwa: A Pan-African Defender of Public Health and Fiscal Justice
At the BAT Kenya Illicit Financial Flows (IFFs) Stakeholder Meeting, Elvina Majiwa a seasoned Pan-African tobacco control and health promotion champion delivered a powerful intervention that cut across borders and institutions.
Drawing from her extensive advocacy work across the continent, Elvina Majiwa addressed the disturbing silence of state regulators in the face of alleged tax manipulation by British American Tobacco Kenya.
This is not just a Kenyan problem it’s an African crisis. Multinational tobacco companies use the same playbook across the region: shifting profits, underreporting sales, and weakening public institutions through strategic silence. The absence of KRA, the Ministry of Health, and the Tobacco Control Board at this meeting raises red flags.
Elvina Majiwa linked BAT Kenya’s alleged KES 3.6 billion tax shortfall to a broader erosion of public trust and called for both domestic and regional action to close regulatory loopholes that allow tobacco companies to operate with impunity.
We must demand a forensic audit. But more than that we need a united front across African governments. Let’s harmonize our excise regimes and enforcement systems, so no company can play one country against another. Tobacco taxation is a health tool. If the Tobacco Control Fund is underfunded because of corporate deceit, then it is the Kenyan people and Africans at large who are being robbed.
Rachel Kitonyo Devotsu: Addressing the Impact on Public Health Funding
Rachel Kitonyo Devotsu, who has trained over 300 policymakers and built civil society coalitions across Sub-Saharan Africa, outlined the public health consequences of BAT Kenya’s alleged tax evasion, particularly regarding the Tobacco Control Fund established under the 2007 Tobacco Control Act.
Q: It was pointed out that BAT Kenya’s underreporting of $94 million in sales led to a KES 3.6 billion tax loss, impacting not just KRA but also the Tobacco Control Fund under the 2007 Tobacco Control Act. From your experience in tobacco control advocacy across Sub-Saharan Africa, what measures should KRA and the Ministry of Health implement to recover these funds and ensure BAT Kenya’s contributions reflect its actual profits?
A: “Good morning, members of the press. The first thing we are calling for is a forensic audit. We cannot take anything BAT says at face value. This report points to deliberate attempts to evade scrutiny. Our initial call is to KRA provide an update on the investigation you committed to what have you found?
Once the discrepancy is verified, we need an audit of the Tobacco Control Fund, which relies on a 2.75% contribution from BAT’s profits. If KES 3.6 billion was undeclared, then 2.75% of that amount is missing from the fund. This money is meant to support public health initiatives, including cessation programs and the Social Health Insurance Fund.
We also demand transparency—how much has BAT actually contributed over the years? The Ministry of Health must audit these contributions and claim the 2.75% of KES 3.6 billion owed. We call on the media to mulika BAT—expose these actions—so we can reclaim what has been withheld.”
Rachel Kitonyo Devotsu’s remarks highlight how tax justice and public health financing are interconnected. She argues that the missing funds could have supported critical healthcare services, particularly as Kenya grapples with rising cases of cancer linked to tobacco use.
John Thomi: Dissecting BAT Kenya’s Financial Discrepancies and the Case for a Forensic Audit
John Thomi, a researcher at Tax Justice Network Africa (TJNA) and co-author of the BAT Kenya Illicit Financial Flows (IFFs) Report, offered a meticulous financial analysis of the irregularities identified in BAT Kenya’s reporting. His presentation underscored the need for immediate corrective action and institutional accountability.
Q: John Thomi, your report reveals a $28 million (KES 3.6 billion) tax discrepancy related to BAT Kenya’s 2017–2018 records. What specific discrepancies led your team to recommend a forensic audit, and how confident are you that such an audit would support your findings?
A:
“Our investigation focused on comparing BAT Kenya’s reported product volumes, declared revenues, and tax payments to the Kenya Revenue Authority (KRA). When excisable goods leave bonded warehouses, companies are required to report these movements to KRA, calculate taxes based on applicable rates, and track domestic versus export sales.
In the case of BAT Kenya, our data analysis showed that reported profits and product movements did not align with actual taxes paid. Additionally, BAT Kenya listed year-end finished goods as 'unfinished stock'—a classification that suggests an attempt to delay tax liability.
BAT Kenya is a publicly traded company. It submits financial reports to the Capital Markets Authority and to shareholders. These records should reconcile with KRA’s tax filings, yet our findings suggest a significant mismatch. That’s a serious issue that cannot be explained away as an error.
Kenya’s Excise Goods Management System (EGMS) is considered one of the most robust in Africa. It features on-site revenue officers, tax stamp tracking, and real-time data collection. Countries like Zambia and Ghana look to Kenya as a model. So if such discrepancies exist under this system, we must ask—was KRA monitoring? And if so, what did they do about it?”
John Thomi’s remarks highlighted not only BAT Kenya’s questionable accounting practices but also raised doubts about the strength of institutional checks in place to detect such discrepancies.
The KES 3.6 billion shortfall isn’t just a number it’s potential funding for Kenya’s health system, cancer care programs, and cessation support. If BAT Kenya underreported, and KRA had the tools to detect it, we have to ask: why wasn’t action taken? A forensic audit is the least that should happen. The public deserves transparency, and KRA must speak.
John Thomi’s findings indicate systemic failures in BAT’s financial reporting and KRA’s oversight, despite Kenya’s regional leadership in excise tax management.
A Call for Accountability: Mulika BAT and Beyond
The absence of key government agencies at the meeting underscored the importance of independent scrutiny. Rachel Kitonyo Devotsu’s call to “mulika BAT” urges stakeholders to demand accountability, particularly for the Tobacco Control Fund’s lost revenue. Meanwhile, Gotschi’s push for a forensic audit challenges KRA to fully utilize its tax enforcement capabilities.
BAT Kenya, previously celebrated for corporate excellence, such as winning the 2019 Exporter of the Year award, now faces growing scrutiny. The KES 3.6 billion tax discrepancy represents potential revenue for Kenya’s healthcare system, particularly as the country rolls out the Social Health Insurance Fund.