The current cigarette tax structure (two-tiers of Ksh. 2,630 per mille for cigarette with filters and Ksh. 1,893 per mille for plain cigarettes is problematic & does not align with public health objectives of reducing consumption of tobacco products:
- The rates fall way below the World Health Organization (WHO) recommended and therefore
promote affordability of tobacco products - Two rates are likely to induce substitution from high to low priced brands (switching down) and
therefore prevent quitting by consumers - The introduction of the lower rates has led to loss of government revenue as tobacco industry has
developed varieties of their popular brands to conform to this new rate
