Chinese Firm’s Illegal Cigarette Racket Exposed – Banned Brands Still in Kenyan Shops

Shapo Trading Ltd, a Chinese-owned company based along Mombasa Road, has been thrust into the spotlight following a government crackdown on its alleged illegal importation of harmful cigarette brands into Kenya.

The Ministry of Health, in collaboration with the Directorate of Criminal Investigations (DCI), recently shut down a Shapo-linked godown after uncovering 1,716 cartons containing 11 unregistered cigarette brands, four of which were entirely absent from the Ministry’s official database.

The operation, conducted on March 25, 2025, revealed that the illicit cigarettes violated the Tobacco Control Act of 2007 and its 2014 regulations.

In response, the Tobacco Control Board revoked all clearance letters previously issued to Shapo Trading Ltd in a letter dated April 3, 2025, addressed to the company’s director, Weir Wang.

The board also suspended the company’s importation license, halting its ability to distribute tobacco products in Kenya.

Two Chinese nationals linked to the company have been arrested, and Shapo’s operations remain suspended as investigations continue.

Health Cabinet Secretary Aden Duale described the situation as a serious threat to public health, vowing that the government would not tolerate the influx of substandard products.

“We are committed to ensuring that only safe and compliant products reach Kenyan consumers,” Duale stated, adding that the matter is under his direct review.

However, the crackdown has raised troubling questions about oversight at Kenya’s borders.

Investigations by a local television revealed that two of the banned cigarette brands were still being sold in local supermarkets and small retail shops, casting doubt on the effectiveness of the government’s enforcement measures.

Two of eleven prohibited cigarette brands were purchased during a verification visit to supermarkets and smaller shops.

Intelligence reports further suggest that some government officials may be complicit in facilitating smuggling and tax evasion, allowing harmful products to slip through undetected.

The Kenya Revenue Authority (KRA) has come under scrutiny for failing to flag the illicit imports, prompting calls for greater accountability.

Shapo Trading Ltd had previously received conditional approval from the Ministry of Health in February 2024 for cigarette imports, following a review of its packaging and labeling.

The approval, valid for one year, required strict adherence to the Tobacco Control Act, including payment of Solatium Compensation and submission of annual disclosure reports.

The company was explicitly warned that clearance could be revoked without notice if non-compliance was detected—a warning that proved prescient.