British American Tobacco (BAT) Kenya is actively promoting its oral nicotine product, Velo, suggesting a potential accord with the government regarding the regulation of this cigarette alternative. Initially introduced as Lyft in 2019 to diversify from conventional cigarettes, the product encountered regulatory hurdles in 2020 but reemerged as Velo in 2022 for a trial period.
Presently, BAT Kenya is extending the nationwide marketing of Velo, with indications from government officials hinting at impending regulations for such products. BAT Plc, the parent company, reported robust growth for Velo in Pakistan and an expedited national rollout in Kenya following successful trials.
BAT Kenya intends to locally manufacture the nicotine pouches in a factory established in 2021, contingent upon regulatory approvals. The company underscores the potential health advantages of these products and urges the government to recognize the distinctions between oral nicotine pouches and tobacco, advocating for regulations that acknowledge these differences.
In the face of criticism from public health advocates and the Kenyan Parliament, BAT contends that products like Velo pose fewer health risks than traditional cigarettes. Despite being primarily reliant on revenue from cigarettes and tobacco processing, the company reported a marginal decline in net profit and sales for the first half of the year.
