This article from East Africa Business Week on April 28, 2008 via AllAfrica.com
Also this report by the Economic Policy Resource Center (pdf format)
Illicit trade between Uganda and Kenya has certainly persisted and is growing as available evidence shows. Kenya is the main source of smuggled cigarettes particularly Supermatch to Uganda.
It is believed that a significant percentage of the Supermatch consignments destined for DR of Congo and Southern Sudan either reach their final destinations and some of it comes back to Ugandan market illegally or it is offloaded in Kampala under the pretext that the consignments are exports and ends up being sold in Kihihi and Rukungiri, Ntungamo, Mbarara, Ishaka and Kasese (Obwona and Ayoki 2005).
The Uganda Revenue Authority (URA) estimated that 20 percent of the cigarettes on the Ugandan market are smuggled (URA, 2004). BAT Uganda estimates this at 15 percent an equivalent of about 180 million sticks of cigarettes per annum equivalent to annual loss of about UShs2.0 billion in tax revenue.
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