BAT Kenya proposes Ksh.70 dividend payout for year ended December

The proposed payout, comprising a final dividend of KSh 60 per share and an interim dividend already paid, underscores the company’s strong profitability and cash position despite a challenging operating environment.

BAT Kenya reported an 18 per cent rise in profit before tax to KSh 7.7 billion, up from KSh 6.5 billion in 2024. The growth was driven by tight cost controls and lower finance costs, which offset a 10 percent decline in net revenue to KSh 23.2 billion from KSh 25.7 billion the previous year.

The revenue drop was largely attributed to the growing penetration of illicit cigarettes in the domestic market. According to third-party research cited by the company, illicit cigarette prevalence surged to 45 percent in 2025 from 37 percent in 2024, depriving the government of an estimated KSh 12 billion annually in lost tax revenue.

Total cost of operations fell 15 percent to KSh 15.7 billion, reflecting lower sales volumes, productivity improvements and disciplined cost management initiatives implemented during the year.

The company also recorded a finance income of KSh 0.2 billion, a significant turnaround from the KSh 0.8 billion exchange loss posted in 2024. The improvement was attributed to the stability of the Kenyan shilling against the US dollar and prudent cash management.

Managing Director Crispin Achola said the results demonstrate resilience despite mounting pressures from illicit trade.

“I am happy to report that despite a challenging environment driven by the growth of illicit cigarettes that now dominate the market locally and regionally, the company was able to post positive results,” Achola said.

He noted that while the domestic market remains adversely impacted, revenue was supported by stable export sales, which account for about half of total revenue,  and the resumption of oral nicotine pouch sales in the second half of the year.

“Profitability was positively impacted by currency stability and proactive cost management initiatives that more than offset inflationary pressures,” he added.

Achola warned that the scale of illicit trade requires urgent and coordinated enforcement measures, including stronger border controls, enhanced market surveillance, stricter penalties for offenders and improved inter-agency collaboration.

“This will dismantle illicit supply networks, restore market integrity, protect compliant businesses and safeguard critical fiscal revenues that support national development priorities,” he said.

The final dividend will be presented for shareholder approval at the company’s Annual General Meeting scheduled for June 12, 2026.

BAT Kenya said it remains committed to working with government agencies to combat illicit trade while advancing its strategy of building “A Better Tomorrow™” through reduced-risk alternatives, including its relaunched oral nicotine pouch products.