Inside the controversies surrounding BAT Kenya, from tax allegations and lobbying claims to the explosive rise of Velo nicotine pouches among young consumers
For decades, British American Tobacco (BAT) Kenya has occupied a dominant position in the country’s tobacco industry, generating billions of shillings in revenue and contributing significant tax income to the government.
Yet behind its corporate success lies a growing list of controversies that have attracted scrutiny from regulators, public health advocates, civil society groups, and consumers alike.
From allegations of tax discrepancies and claims of regulatory influence to mounting concerns over the rapid spread of its nicotine pouch product, Velo, BAT Kenya finds itself at the center of one of the most consequential public health and corporate accountability debates in the country.
This is the BAT Kenya dossier.
Tax Questions That Refuse to Go Away
One of the most significant controversies facing BAT Kenya emerged in 2025 following an investigative report that alleged discrepancies in the company’s revenue disclosures for the 2017 and 2018 financial years.
The report claimed there was a substantial gap between figures reported in different jurisdictions, raising questions about whether the company may have underpaid taxes amounting to billions of shillings.
The allegations triggered calls from civil society organizations and tax justice advocates for a comprehensive forensic audit of BAT Kenya’s financial records.
The Kenya Revenue Authority (KRA) subsequently indicated that it was reviewing the claims.
BAT Kenya strongly rejected the allegations, describing the report as inaccurate and insisting that its financial statements complied with all applicable laws, accounting standards and regulatory requirements.
While no conclusive finding of wrongdoing has been publicly announced, the controversy reignited debate about tax transparency and the accountability of multinational corporations operating in Kenya.
Allegations of Corporate Influence
Another controversy emerged following reports suggesting that BAT had successfully lobbied government authorities regarding the regulation of nicotine pouch products.
Investigative reports alleged that health warning requirements for Velo were modified after discussions involving the company and policymakers.
Public health advocates argued that any weakening of warning labels could potentially undermine consumer awareness of nicotine-related risks.
BAT has maintained that its engagement with regulators is lawful, transparent and consistent with normal industry practice.
The company has repeatedly stated that it operates within established legal frameworks and supports evidence-based regulation.
Nevertheless, the episode fueled broader concerns about the influence large corporations may wield over public policy decisions.
The Rise of Velo
While traditional cigarette consumption has faced increasing restrictions and declining social acceptance, nicotine pouches have emerged as one of the fastest-growing segments of the nicotine market.
At the center of that growth is Velo.
Marketed as a smoke-free nicotine product, Velo is placed under the lip, allowing users to consume nicotine without smoking or vaping.
BAT and other tobacco companies present nicotine pouches as alternative products for adult nicotine consumers.
However, health experts warn that the absence of smoke does not eliminate the addictive nature of nicotine.
The rapid growth of Velo in Kenya has generated increasing concern among parents, educators, and health advocates who fear that nicotine pouch use is expanding among younger consumers.
Social media platforms have played a significant role in popularizing the product, with users sharing experiences, reviews, and recommendations that have helped increase its visibility.
A New Generation and Nicotine Addiction Concerns
Public health advocates argue that nicotine pouches risk creating a new generation of nicotine-dependent consumers.
Medical experts note that nicotine remains a highly addictive substance regardless of the delivery method.
Concerns have intensified as reports emerge of younger users experimenting with nicotine pouches due to perceptions that they are cleaner, safer or less harmful than cigarettes.
Health campaigners have called for stronger regulations, more prominent warning labels, and increased public awareness campaigns aimed at educating consumers about nicotine addiction.
Supporters of nicotine harm-reduction strategies, however, argue that products such as Velo may offer alternatives for adult smokers seeking options other than combustible tobacco.
The debate has become one of the most polarizing issues in Kenya’s public health sector.
Global Troubles Add to Local Scrutiny
BAT Kenya’s challenges are unfolding against a backdrop of broader controversies involving its parent company.
British American Tobacco has faced regulatory investigations, legal disputes, and compliance-related cases in multiple jurisdictions around the world.
These global controversies have increased scrutiny of BAT’s operations across various markets, including Kenya.
For critics, the pattern raises questions about corporate governance and accountability.
For the company, it highlights the challenges of operating in a highly regulated and politically sensitive industry.
The Bigger Question
The BAT Kenya story is about more than one company.
It touches on questions of taxation, public health, corporate influence, consumer protection, and the responsibilities of multinational corporations operating in developing economies.
As regulators examine emerging nicotine products and public health advocates push for tighter controls, the debate surrounding BAT Kenya is unlikely to fade anytime soon.
What remains clear is that Velo’s rapid growth, combined with longstanding questions about corporate accountability, has placed BAT Kenya under an intense spotlight.
Whether that scrutiny leads to tougher regulation, policy reforms, or greater transparency remains to be seen.
But for now, the BAT Kenya dossier continues to grow—one controversy, one investigation and one public health debate at a time.
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