Tobacco regulations expected to slow down revenue in Kenya

By professo

Following the enforcement of stricter tobacco regulations, it is expected that Kenya’s tobacco firm’s revenue will suffer slow growth.

Genghis Capital Investment Bank, a Trading Participant in the Nairobi Securities Exchange (NSE), has analysed the East African industry.

According to Gerald Muriuki, a Genghis analyst, stock now retains a downside of 16.7% on the current trading price of Sh800 (US$7.76).

SEE ALSO:

The regulations are subsequent to British American Tobacco’s (BAT) court battle that ended with BAT bring a 2% levy on the value of manufactured or imported tobacco products in the control fund.

The tobacco control fund aims to compensate those affected by the product, as well as funding public education on the effects of tobacco.

“Increased anti-smoking lobbying, worldwide push against tobacco use points to an industry under increased pressure on the growth frontier…in the medium term, as the laws come into force we expect local sales to slow at a fairly steady three-year compound annual growth rate of -0.6 per cent,” Mr Muriuki stated in a report published last week.

“The ban on sale of single sticks will be a drag on affordability, while a ban on public smoking and health campaigns will see a smaller percentage of future population engage in smoking due to lower exposure and growing health awareness.”

Share

Featured Articles

Top 10 most innovative telecom operators in the Middle East

With Dubai-based Telecoms World Middle East in full swing, we chart the most innovative telcos from the region – and look at how they are transforming

Top 10 fastest-growing Indian companies in the UK

Business Chief takes a look at the top 10 fastest-growing Indian companies in the UK, according to the India Meets Britain Tracker from Grant Thornton

Top 10 workplaces prioritising people and planet in the UAE

Sustainable, flexible, collaborative, tech-driven, and amenities-rich, the office of the future considers both people and planet – here are 10 in the UAE

Top 10 female HR execs leading Saudi’s workplace transition

Leadership & Strategy

Top 10 largest asset managers by AUM operating in the UAE

Corporate Finance

Top 10 female CEOs leading Africa’s biggest businesses

Leadership & Strategy