Africa-Press – Kenya. BAT Kenya has posted a Sh5.2 billion profit after tax for the year ended December 2025, up from Sh4.4 billion the previous year, despite illicit trade hitting its business hard.
The 18 per cent profit jump was driven by effective cost management and lower finance costs. During the period, profit before tax rose to Sh7.7 billion from Sh6.5 billion in the previous year.
Illicit cigarette prevalence currently quoted at 45 per cent of the domestic market, a drastic increase from 37 per cent in 2024, negatively impacted the firm’s net revenues, which dropped by 10 per cent from 25.7 billion to Sh23.2 billion. This illicit activity not only undermines industry revenues but also deprives government of an estimated Sh12 billion annually.
The Nairobi Securities Exchange-listed cigarette maker’s total cost of operations decreased by 15 per cent to Sh15.7 billion, reflecting lower sales volumes, effective cost management, and productivity initiatives implemented during the period.
During the year under review, the company recorded a finance income of Sh200 million, a significant improvement from an Sh800 million exchange loss in the prior period, driven by Kenyan Shilling stability against the US Dollar and prudent cash management.
Despite the challenges, the company has maintained its strong dividend position with an expected total dividend payout of Sh70 per share, affirming the BAT Kenya stock as one of the highest yielding on the NSE.
Commenting on the performance, BAT Kenya managing director Crispin Achola said, “I am happy to report that despite a challenging environment driven by growth of illicit cigarettes that now dominate the market locally and regionally, the company was able to post positive results.”
Revenue was supported by stable export sales, representing approximately half of the company’s revenue and the resumption of sales of the firm’s oral nicotine pouches in the second half of the year, Achola noted.
“In line with our commitment to delivering sustainable shareholder value, the board of directors has proposed a final dividend in respect of the year ended 31 December 2025 of Sh60 per share, to be recommended for approval by shareholders at the Annual General Meeting to be held on 12th June 2026.”
The final dividend, when added to the interim dividend of Sh10 already paid, gives a total dividend of Sh70 per share. “We are confident in the resilience of our business, our proven strategy and ability to sustainably deliver shareholder value. Aligned with our purpose of building A Better Tomorrow, we continue advancing A Smokeless World through innovative, reduced risk alternatives,” he said.
This is demonstrated by the relaunch of the company’s oral nicotine pouches in the second half of 2025. Achola said the fight against illicits requires urgent, coordinated, and sustained enforcement action 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 company, he affirmed, remains committed to working with relevant government agencies combating the illicit trade menace, and engaging transparently for progressive and evidence-based regulation of the industry.
