Tag: Velo

  • ‪BAT Kenya Banks On Banned, Rebranded and Addictive Nicotine Pouches Targeting Vulnerable Youths To Maximize Profits

    ‪BAT Kenya Banks On Banned, Rebranded and Addictive Nicotine Pouches Targeting Vulnerable Youths To Maximize Profits

    British American Tobacco Kenya has resumed selling nicotine pouches after a five-year hiatus, rebranding a product once banned for illegally targeting minors and now projecting it to deliver up to a quarter of its revenues despite overwhelming evidence that the new generation of oral nicotine products is hooking school-going children on addiction.

    The cigarette manufacturer booked Sh232 million from sales of its Velo nicotine pouches in the six months to December 2025, contributing one percent of total turnover in its first half-year back on the market.

    Finance Director Philemon Kipkemboi told investors the product could grow to contribute between 15 and 25 percent of total revenues within three to five years.

    What the company calls a triumphant return, public health advocates describe as a predatory resurrection.

    The product now sold as Velo first entered Kenya in 2019 under the brand name Lyft, marketed through influencer campaigns on social media and sold on Jumia as a party product before the government intervened.

    “The registration and marketing of the nicotine pouch was shrouded by controversies,” stated a 2021 investigative report. “It is suspected that licensing officials were compromised to allow the product illegally into the market.” The Pharmacy and Poisons Board had granted import approval before the government reversed course and banned the product in October 2020 following public outcry.

    BAT Kenya Managing Director Crispin Achola, who admitted in a lifestyle interview that he does not use any tobacco products himself, had pushed for the company to sell remaining stock worth Sh33 million even after the ban was imposed, arguing that repackaging with warning labels would be sufficient.

    Anti-tobacco lobby groups protested that this would expose 400,000 young people to addiction.

    The company has now returned with a familiar playbook. After threatening to walk away from its Sh2.5 billion Nairobi plant, BAT successfully lobbied the Ministry of Health to relax warning label requirements.

    Investigative reporting by The Examination, Africa Uncensored and The Guardian revealed that BAT pressured the government to dilute health warnings, allowing the company to sell products with labels that only state “this product contains nicotine and is addictive” while omitting mention of carcinogenic tobacco-specific nitrosamines .

    In the United Kingdom, BAT informs consumers that nicotine pouches contain these cancer-causing compounds. Kenyan consumers are not afforded the same transparency.

    “The tobacco industry will stop at nothing to achieve its known objective of making profits, even at the detriment of public health,” the African Tobacco Control Alliance warned in 2021 when the bribery scandal broke.

    A public relations firm hired by BAT had attempted to bribe an investigative journalist for inside information on a report exposing the company’s marketing tactics.

    The company’s global strategy makes no secret of its ambitions. BAT Group aims to reach 50 million consumers of non-combustible products by 2030, having already secured 34 million users by the end of 2025 . In investor presentations, BAT speaks of “stimulating the senses of new adult generations” and expanding the overall nicotine market.

    Public health experts argue there is only one interpretation. “The only rationale for a corporation like BAT to spend big money on marketing the new product is not just to increase the overall size of the nicotine product but a clever way of recruiting a new generation of nicotine addicts,” an earlier investigative report concluded.

    The evidence from the ground supports this grim assessment. Velo has become immensely popular among Kenyan teenagers, with short videos of young TikTokers using the product garnering millions of views.

    Field surveys have revealed the products are being sold in schools. A draft report released by a government-appointed task force highlighted that young people are more susceptible to the influence of tobacco companies.

    The product itself is deceptively simple: small white pouches containing nicotine derived from tobacco mixed with fibres from pine trees, eucalyptus and flavouring agents. Users slip them between gum and lip, where the nicotine absorbs directly into the bloodstream. No smoke, no smell, no tell-tale signs. For a student in a classroom, it is undetectable.

    “Nicotine is toxic to the developing adolescent brain,” health experts warn. Yet BAT was forced to withdraw its nicotine pouches in Russia after products made by other brands were blamed for teenage hospitalisations and linked to one death. The company pressed on in Kenya regardless.

    The regulatory environment remains deeply concerning. The Tobacco Control (Amendment) Bill 2024 currently before the Senate seeks to ban flavoured vapes and nicotine pouches while restricting advertising and banning influencers from promoting tobacco products . Offenders would face up to three years imprisonment or fines of up to Sh500,000.

    But traders are pushing back. The Bar, Hotels and Liquor Traders Association has petitioned the Senate to shelve the Bill, arguing that banning flavours would drive consumers to illicit products. Secretary General Boniface Gachoka claimed the products are priced out of reach for minors at Sh600 per tin, despite clear evidence of widespread youth uptake.

    “Bans and excessive restrictions will only drive consumers to criminals, fuel unemployment and deepen poverty,” Gachoka argued . The association urged lawmakers to focus on enforcing existing laws, including the ban on sales to under-18s.

    Yet it was precisely the failure to enforce those laws that necessitated the 2020 ban. BAT had marketed Lyft as a harmless lifestyle accessory, hiring influencers to pose with the pouches and frame them as trendy, aspirational and classy. Because it was smokeless, young people deemed it safe. They were wrong.

    The company has since divested from its Nairobi manufacturing plant and now imports Velo from Pakistan, though it says local production may be reconsidered depending on performance.

    The shift to imports means Kenya loses jobs and investment while BAT retains the profits.

    Globally, non-combustible products account for 18 percent of BAT Group’s revenue. The target is 50 percent by 2035 . Kenya, described in leaked documents as one of BAT’s “most exciting trial markets” for low and middle-income countries, serves as the launch pad for East and Southern Africa.

    The human toll is already being felt. Studies show that more than 8,000 Kenyans die annually from tobacco-related diseases, part of what the World Health Organization calls the biggest public health threat the world has ever faced. Cigarettes kill about 15 people every minute.

    BAT’s response to questions about youth uptake remains consistent: “All marketing activity for our products will only be directed towards adult consumers and is not designed to engage or appeal to youth.” The company insists it follows local laws, legislation and platform policies.

    Investigative journalists have documented otherwise. The Bureau of Investigative Journalism established that BAT’s tactics in different countries have attracted a new generation including non-smokers to highly addictive nicotine products. BAT’s own research shows that at least half of adult vapers and those using nicotine pouches were not using nicotine before.

    BAT Kenya welcomed the Ministry of Health’s advisory that Lyft should be sold and regulated under the Tobacco Control Act, which demands graphic images and warnings on packages, sales only to adults, and higher taxation. But the damage, as one commentator put it, was already done.

    The company now has 13.5 million consumers of its nicotine pouches globally, a growth of three million in 2020 alone. Its Kenyan subsidiary defied Covid-19 business disruptions to record a 42 percent jump in net earnings that year.

    When Achola was asked whether he uses any tobacco product, his answer was no. The man steering BAT Kenya’s push into nicotine pouches does not consume his own product. He knows what the company’s internal research confirms: nicotine is toxic, addictive and harmful.

    But the numbers tell their own story. Cigarette sales are declining as taxes rise and health awareness grows. The solatium levy introduced by government now funds tobacco cessation programmes, but it also cuts into profits. Nicotine pouches offer a way forward: a new product, a new market, a new generation of addicts.

    The company argues it is helping smokers quit. Public health advocates see a corporation doing what corporations do: maximising profits by any means necessary. The difference is that the product kills. Cigarettes kill 15 people every minute. By the time this article is read, more than 100 will have died. Tobacco firms‘ profits will not.

    Kenya faces a choice. The Tobacco Control Bill offers an opportunity to ban flavoured pouches, restrict advertising and protect children. Or the country can continue as a trial market for multinational corporations willing to bribe, lobby and threaten their way into the pockets of young Kenyans.

    The evidence is overwhelming. BAT knows its product is dangerous. It warns British consumers about cancer-causing compounds while telling Kenyans only that nicotine is addictive. It claims to target only adults while its products flood schools and generate millions of TikTok views.

    “BAT was fully aware of what it was doing and the dark recruitment of addicts they were bringing without considering the future health of the young generation,” concluded the 2021 investigation.

    Nothing has changed except the name. Lyft became Velo. The factory closed then reopened. The product was banned then unbanned. Through it all, the pouches keep coming and the teenagers keep using them.

    The government has tools to act. The WHO Framework Convention on Tobacco Control, which Kenya ratified, requires a comprehensive ban on all tobacco advertising, promotion and sponsorship. Marketing tobacco products online through influencers is a flagrant violation of Article 13.

    Yet influencers are precisely how the product spreads. Young Kenyans see their favourite personalities posing with pouches, framing them as fashionable and safe. They do not see the cancer warnings hidden in small print. They do not know that nicotine damages their developing brains. They only know it looks cool.

    BAT Kenya projects Velo will contribute up to 25 percent of revenues in the medium term. That projection depends on one thing: young people starting and continuing to use nicotine. It depends on recruitment. It depends on addiction.

    The company calls it growth. Public health calls it a tragedy.

    By the time the Senate finishes debating the Tobacco Bill, thousands more young Kenyans will have tried nicotine pouches for the first time. Some will get sick. Some will switch to cigarettes. Some will die. BAT’s profits will not.

  • How British American Tobacco Blackmailed Kenyan Government To Weaken Health Warnings On Nicotine Pouches

    How British American Tobacco Blackmailed Kenyan Government To Weaken Health Warnings On Nicotine Pouches

    An investigation by The Guardian has uncovered British American Tobacco (BAT) pressured Kenya to reduce health warnings on Lyft nicotine pouches, threatening investment withdrawal. BAT threatened it would pull investment from a Nairobi factory if its request for smaller labelling was not met.

    Letters between British American Tobacco (BAT) and the Ministry of Health show the government yielded to the tobacco giant’s demand to sell Velo – one of the biggest-selling nicotine pouch brands globally – with significantly smaller health warnings and without mentioning potentially cancer-causing toxicants present in the products.

    The letters are among documents shared with the Guardian and Africa Uncensored, and obtained by the investigative news outlet the Examination, which reveal the industry’s influence over policy in the east African country.

    Existing tobacco regulations in Kenya stipulate that such labels must cover a third of the package and include information about the health hazards of the product. BAT lobbied to reduce the size of the warning, the letters show. The Ministry of Health agreed that Velo could be sold with a small warning saying: “This product contains nicotine and is addictive.”

    In the UK, warning labels also inform consumers that nicotine pouches are “not risk-free” because they contain traces of tobacco-specific nitrosamines (TSNAs), cancer-causing compounds that are also present in cigarettes.

    Velo pouches have gained global popularity, including among Kenya’s youth. TikTok videos of young Kenyans using Velo have amassed millions of views, and academic research shows the product being is sold in schools.

    A draft report by a government taskforce, which was then leaked to the Examination, accuses tobacco companies of targeting young people. Fearing a new generation will become addicted to nicotine and that the pouches could be a gateway to smoking, the taskforce is calling for strict regulation of the products. Other politicians are demanding an outright ban.

    The revelations about BAT’s role in shaping health warnings in Kenya come amid an industry-wide drive to sell more “smoke-free” – yet still addictive – nicotine products across the globe.

    The global market for nicotine pouches, one of many “smoke-free” products, was $3bn (£2.36bn) in 2021. BAT views Kenya as one of its key “test markets” in low and middle-income countries, according to its financial presentations, and plans to make the country its base of operations for a rollout of the product across southern and eastern Africa.

    However, it isn’t clear how nicotine pouches affect human health over the long term.

    In September 2021, BAT’s managing director wrote to the Kenyan health ministry asking for permission for Lyft (as Velo was called when it first entered the market) to be sold with a warning covering just 10% of the pack. It said the “resumption of factory operations” hinged on this smaller warning being approved. “Your positive consideration of this request will allow us to operationalise our factory,” the letter said. The Ministry of Health agreed to allow warnings covering 15% of the front of the pack.

    A successful lobbying campaign

    BAT first launched its nicotine pouches into the Kenyan market in 2019.

    The company obtained its licence to sell the products through Kenya’s Pharmacy and Poisons Board, a health ministry department that regulates drugs and medicines. Under that licence, the pouches, then sold under the brand name Lyft, were only to be sold in drug stores.

    But BAT and its vendors sold the pouches online and in shops. They advertised the pouches through social media influencers and giveaways at universities. Their popularity soared with young people, including children.

    A Kenyan DJ and a TV presenter were among the influencers hosted by BAT at the 2019 Formula One Grand Prix in Abu Dhabi, as part of the company’s sponsorship of the McLaren F1 team. BAT paid the social media team to post hashtags such as #GetLyfted, #LyftxMcLaren and #LyftKenya to followers.

    In September 2020, the Kenyan health ministry wrote to the Pharmacy and Poisons Board challenging its decision to license Lyft, which it said was also being sold in vending machines, in violation of the law. BAT said it has never sold its products in vending machines.

    The ministry asked for a comprehensive report on the circumstances that led to the Pharmacy and Poisons Board granting BAT a licence to sell its pouches in the first place. The Pharmacy and Poisons Board wrote to BAT Kenya in October 2020, saying Lyft should be sold only by pharmacies and must be withdrawn from retail stores and online marketplaces. It said the product must not be advertised.

    In response, BAT temporarily suspended Lyft sales. It told investors it would “continue to engage with the local authorities”.

    In January 2021, the health ministry wrote to BAT saying the pouches would now be subject to Kenya’s existing tobacco regulations, which require health warnings that cover about a third of the front of the packaging and half of the back. Before BAT suspended sales of Lyft they were being sold with significantly smaller warnings.

    “This is when heavy lobbying now started, letters were written and many meetings held in Afya House [the headquarters for the Kenyan health ministry],” a government public health official told the Examination on condition of anonymity.

    The key breakthrough came for BAT shortly after it wrote to the health ministry in September 2021 and threatened to pull investment from a new nicotine pouch factory it had pledged to build in Nairobi, which would serve east and south Africa.

    In the letter, Crispin Achola, BAT Kenya’s managing director, told the cabinet health secretary Mutahi Kagwe that “our resumption of factory operations and the sale of Lyft in Kenya hinges on the provision of appropriate text health warnings”.

    Achola drew Kagwe’s attention to a subclause in Kenya’s Tobacco Control Act of 2007 that allows the cabinet secretary discretion to alter the health warnings on products via a special directive.

    Initially, BAT had pledged more than $15m to build a new factory for the nicotine pouches.

    Velo, nicotine pouches.

    Less than a month after BAT made its threat about the investment, Kagwe permitted BAT to cut the size of the health warnings on the nicotine pouch packaging in half and said the only health warning it had to include was the words: “This product contains nicotine and is addictive”, with no mention of the presence of the cancer-causing toxicants.

    As a result, the products were given the green light to re-enter the Kenyan market in June 2022. This is when the pouches, rebranded to Velo, flooded back.

    BAT was given special dispensation to sell nicotine pouches without standard-sized health warnings until July 2023. After that permission expired, the tobacco giant wrote to the health ministry in August asking for an indefinite exemption, “pending the development of specific regulations on this product and related categories”.

    The health ministry has not yet responded to BAT. Velo is still on sale although there are shortages in shops. In October and November 2023, multiple shipments of nicotine pouches were impounded at Jomo Kenyatta International Airport. It is unclear why but in total, almost 20 tonnes of the product have been seized.

    BAT Corruption Allegations

    In a different scenario but similar hands, allegations of top level bribery, use of questionable dealings to market illness-causing tobacco-related illness, death and economic harm across Africa, the Cigarette maker has been accused of using financial inducements to undermine tobacco control efforts in Africa.

    According to global tobacco industry watchdog, STOP, BAT gave cash (per diems, campaign donations) and cars to dozens of politicians, civil servants, journalists as well as people working at competitor companies to help influence and secure health policies that favour their business activities in key African countries.

    Two new analyses of whistleblower documents and court records by the Tobacco Control Research Group at the University of Bath and published by STOP, suggest that BAT allegedly used payments to dozens of individuals and potentially unlawful surveillance to tighten its market grip on Africa.

    The reports—one on the company’s activities in several East and Central African countries, another on its aggressive tactics in South Africa — reveal that BAT appeared to be operating “as if it were above the law,” according to the report on South Africa, to sell cigarettes — products known to cause tobacco-related illness, death and economic harm — across the region.

    The whistleblower documents connected to BAT’s questionable dealings in East and Central Africa revealed evidence of payments made in Kenya, Tanzania, Uganda, Rwanda, Burundi, Sudan, Comoros, DR Congo, Malawi and Zambia. Researchers identified 236 payments made between 2008 and 2013 totalling $601,502 allegedly used to influence policy and sabotage competitors.

    The researchers categorised payments into two: Those “raising questions under the United Kingdom Bribery Act (UKBA)” and another less serious but still suspicious group of payments “warranting further investigation under UKBA.”

    The payments included more than $28,500 to sources within the Kenya Revenue Authority and more than $38,500 to a minister in Kenya, allegedly in exchange for intelligence and to the award of a tender to offer tracking services.

    Corporate espionage

    In Kenya, roughly $56,000 was paid to a private contractor, allegedly to covertly establish a trade union and orchestrate labour unrest at a competitor, Mastermind Tobacco Kenya. The effort was dubbed “Operation Snake.”

    In Uganda, the investigators say some $20,000 was found to have been sent to the chair of a Ugandan parliamentary committee to allegedly “amend” a report related to an investigation into Continental Tobacco Uganda.

    Another $110,000 was found to have been paid to an executive of Leaf Tobacco and Commodities Ltd of Uganda, allegedly in exchange for evidence of potentially illegal activities by the firm. A document of the proposal appears to include an offer to arrange an “immunity from prosecution agreement.”

    Documents show BAT often routed the payments through third-party companies referred to as “service providers.”

    They also show that BAT staff in London appear to have been involved in requesting and authorising payments, processing invoices and approving service-provider contracts.

    In another case, an employee of a Kenyan PR agency working for British American Tobacco (BAT) offered a bribe to a journalist to leak details of the Bureau’s investigation into how the company has targeted young non-smokers.

    Edwin Okoth was investigating BAT’s activities in Kenya on behalf of the Bureau when last monthhe was offered a bribe by an Engage employee in exchange for details of the investigation.

    In text messages, the employee asked Okoth, “what is your price?” for leaking the information and subsequently confirmed he was “serious”. They went on to say that the offer was part of a “media intelligence” gathering operation that would help them “manage the client”, meaning BAT.

    Just days earlier the UK’s Serious Fraud Office had announced that it was closing an investigation launched in 2017 over allegations BAT had bribed officials in Kenya. It said there was insufficient evidence to bring a prosecution.

    Additional reporting by he Guardian