British American Tobacco (BAT) is planning to invest at least 2.5 billion shillings in Kenya in its Modern Oral Nicotine plant according to Managing Director Beverley Spencer–Obatoyino.
Speaking during the 68th Annual General Meeting that was held virtually, Spencer said that the plant that is situated along Likoni Road will is expected to be completed in the 3rd quarter of 2020. She says once the plant is complete, it is respected to support at least 50,000 people both directly and indirectly.
“With many Kenyan smokers already using oral stimulants, we believe that with the right fiscal and regulatory environment, Modern Oral Nicotine products can be a commercial success and provide smokers with a genuine and potentially less risky alternative to cigarettes,” said Beverley.
In 2019, BAT Kenya posted a 4.9 percent decline in net profit on the back of higher taxes.
“Lower cigarette sales volume was primarily in the domestic market. This was occasioned by excise led price increases which continue to adversely impact consumer affordability and contribute to the high incidence of illicit trade in cigarettes,” the firm said in a response to the shareholders.
“During the year, gross revenue increased driven by the excise led price increases in Kenya, increased cutrag (semi-processed tobacco) sales volumes into Sudan, and the introduction of new category revenue in Kenya following the launch of LYFT (modern oral nicotine pouch).”
The company also confirmed that its subsidiary is developing a Covid-19 vaccine which is already at the testing stages.