As African countries face rising debt, declining official development assistance and growing cases of non-communicable diseases, the need to strengthen domestic resource mobilisation has become increasingly urgent. Health taxes offer one important response, with the potential to support public health objectives while generating sustainable domestic revenue.
From 25–29 August 2026, ATAF and the East African Community (EAC) in Mombasa, Kenya, hosted a Regional Engagement on Health Taxes in the Context of Excise Taxation, convened alongside the EAC Tax Policy and Tax Administration Sub-Committee. ATAF partnered with the World Health Organization, Tax Justice Network Africa, the University of Cape Town and the World Bank Group to support the regional discussion.
The engagement placed health taxation directly within the EAC’s tax harmonisation agenda, bringing together officials responsible for shaping tax policy and administration across Partner States. Discussions examined how coordinated approaches to health and excise taxes can strengthen domestic revenue mobilisation, improve public health outcomes and address cross-border tax arbitrage and illicit trade.
Opening the meeting, ATAF Manager for Domestic Tax, Mr Linstrom Marangu, emphasised the importance of regional cooperation.
“Health taxes represent a unique and underutilized opportunity. For finance ministries, they provide a progressive and sustainable source of domestic revenue. For public health authorities, they remain among the most effective tools available to reduce the consumption of harmful products and improve health outcomes. While health taxes can generate significant health and revenue benefits at the national level, regional cooperation can significantly enhance their effectiveness. Divergent tax rates and legal frameworks across neighbouring jurisdictions create fertile ground for cross-border tax arbitrage, smuggling and illicit trade.”
The programme examined the design and effectiveness of health taxes focusing on tobacco, alcohol, and sugar-sweetened beverages. Through a critical review of existing tax policies across EAC countries, participants explored issues such as tax structures, rates, product definitions, and administration. The discussions enabled countries to assess the strengths and limitations of current approaches and identify priority areas for reform to enhance the public health and fiscal impact of these taxes.
The discussions, supported by technical expertise from ATAF, the University of Cape Town and the World Bank Group, recognised that effective health taxes must balance public health objectives, revenue generation and practical implementation.
By convening the engagement within the EAC’s Tax Policy and Tax Administration Sub-Committee, the partnership connected broad policy ambitions with the practical work of tax design, administration and regional coordination.
The meeting demonstrates ATAF’s commitment to working alongside regional organisations and partners to support African countries in developing coordinated, practical and sustainable tax solutions that respond to shared challenges and national priorities.