Sector: Manufacturing and Allied
Main Investment Segment
KES 544@9:52 AM EAT
End of day - Apr 24, 2019
- - -
500.00 - 725.00
British American Tobacco Kenya Ltd. manufactures and markets tobacco and related products. It manufactures cigarettes under contract and sells processed tobacco green leaf for its related companies. BAT does not own Tobacco nor does it employ farmers directly; the company has 5,537 contracted farmers countrywide where contracted farmers have a set amount of leaf to deliver. The company earns 45 per cent of its revenue from export of cigarettes and semi-processed (cut rag) tobacco to countries like Egypt.
Recently the company signed a deal with Malian state tobacco company Sonatam to produce and distribute BAT's Dunhill International cigarettes for the West African market. BAT is focusing on other markets as Kenya tightens laws and regulations in the Tobacco Industry meant to govern the Manufacture, Sale and Advertising of Tobacco Products. Tobacco has been the mainstay of BAT's products for the longest time; however there is huge potential in next generation products which include Vapour Products like e-cigarettes. The Success of BAT over the years can be attributed to Immense investment in Reasearch and Development that has bolstered innovation to for instance make BAT the first tobacco company to have a nicotine product – Voke – licensed as a medicine. Vapour Products (e-cigarettes) are not entirely without risk, but they are widely considered to be significantly less risky than smoking.