Hurdles for BAT Kenya’s Ksh 2.5 Bn Modern Oral Nicotine Plant

Hurdles for BAT Kenya’s Ksh 2.5 Bn Modern Oral Nicotine Plant

BAT Kenya Managing Director Beverley Spencer–Obatoyino

Kenya’s Health Cabinet Secretary Mutahi Kagwe has declared the registration of nicotine pouches popularly known as LYFT illegal, a blow to British American Tobacco Kenya (BAT). 

Kagwe said the licencing of the pouches by the Pharmacy and Poisons Board was done contrary to the provisions of Section 25 of the Pharmacy and Poisons Act CAP 224

Parts of  a letter to the Board, Kagwe said:

“The nicotine pouches neither meet the descriptions of ‘Part I Poison’ nor “Part II poison’ as prescribed in the Act.

Further, the manner in which the product is sold to the public does not meet the provisions of Section 23 of CAP 244 as required,.

In view of the above, therefore, you are required to furnish the ministry with a comprehensive report on the criteria used and circumstances leading to the registration and licencing of the product under the Pharmacy and Poisons Act.” 

On the other hand, in June,  BAT Kenya said it is investing Ksh 2.5 billion in its Modern Oral Nicotine plant to be complete by quarter 3 of 2020.  

Philemon Kipkemoi, Finance Director BAT Kenya said the plant is 60 percent complete, and the KSh 2.5 billion spans across several years for the project that commenced in 2019.