Potential $28 million tax discrepancy involving British American Tobacco in Kenya

Analysis by the Investigative Desk with support from the Tobacco Control Research Group and Tax Justice Network Africa, has identified significant discrepancies in the revenue statements of British American Tobacco’s subsidiary in Kenya (BATK).

The discrepancies of up to KES 9.6 billion (USD 93 million) were found in BATK’s 2017 and 2018 revenue statements. These suggest there could be a mismatch in the tax that BATK declares and what it pays by up to $28 million USD.

Tobacco products continue to kill over 8 million people globally each year, including twelve thousand people in Kenya. The tobacco market in Kenya, and indeed most of Africa, is dominated by the multinational, UK-headquartered tobacco company British American Tobacco (BAT). BAT carries out its operations in Kenya through its subsidiary, British American Tobacco Kenya (BATK). BATK claims that it is a responsible company looking to reduce harm, contribute to the economy, and pay its fair share of tax – but these latest findings seem to suggest otherwise.

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The report was quickly picked up by other media such as Phys.org, Health Business, Capital Business, The Star, Nairobi, The Kenyan Wall Street. The Kenya Revenue Authority (KRA) responded to the tax discrepancy report in a media statement. BAT Kenya also gave a position statement.

‘From the BAT Kenya investigative report by University of BATH and Investigative Desk in Netherlands, the #ExposeBATKenya campaign has gained significant traction, with activists pushing for greater scrutiny and regulatory action against the company’s practices’, reports Tax Justice Network Africa. ‘From January to March, the campaign around BAT Kenya’s issues reached 223 million people, averaging 3.59 million daily impressions. The campaign has sparked global attention, particularly in Kenya, the USA, South Africa, Tunisia, United Kingdom, Tanzania, Uganda, Cameroon, India and the Netherlands, with prominent coverage from major outlets like Kenya Times, Business Daily, The Star Newspaper, MSN South Africa, Daily Maverick, and All Africa. The #ExposeBATKenya has dominated social media, particularly on X, followed closely by news blogs.’