KRA says stronger enforcement would need to be complemented by greater consumer awareness Research presented at the forum showed that a 10 per cent increase in tobacco prices can reduce consumption by between 4 and 8 per cent, demonstrating the potential of taxation as both a public health and fiscal policy tool.
/HANDOUT The say channeling part of the collections directly to major public health institutions to strengthen financing for Universal Health Coverage (UHC) can help in easing the cost burden. The proposal comes amid growing concern over the rising cost of treating tobacco-related illnesses and questions over whether the billions of shillings collected through excise taxes on harmful products are sufficiently supporting prevention, treatment and other public health interventions.
Participants at a tax and public health forum argued that health taxes should be viewed not only as a revenue collection tool but also as a mechanism for reducing disease, financing prevention programmes and easing the pressure on the country's healthcare system.
They proposed that part of the revenue collected from tobacco, nicotine and other harmful products be tied to measurable health outcomes, including smoking cessation, disease prevention, cancer treatment and youth-focused interventions. The discussion comes as evidence presented at the forum showed that Kenya continues to face a significant gap between the taxes imposed on tobacco products and the health and economic burden associated with their consumption.
Participants said tobacco-related illnesses alone cost the country tens of billions of shillings annually, strengthening the case for using health taxes to directly support the health sector. Tax Justice Network Africa, Policy Associate for Tax and Equity John Njenga, said taxation should ensure that manufacturers of harmful products contribute more towards addressing the health consequences associated with their products.
He said resources collected from health taxes could be channelled towards prevention and cessation programmes, particularly among young people who are increasingly being exposed to emerging nicotine products such as e-cigarettes and nicotine pouches. “We need taxation regimes that actually protect them from use, but also ensure that whatever resources are collected from taxation goes into supporting cessation programmes and prevention programmes,” he said.
Participants also called for funds collected from health taxes to support large health institutions dealing with expensive illnesses such as cancer, arguing that earmarking part of the revenue could create a more predictable source of financing for specialised treatment.
The proposal could add momentum to the broader debate on sustainable financing for UHC, which requires Kenya to expand domestic resource mobilisation while managing rising healthcare costs.