Car & General half-year profit quadruples to Sh2.6bn

Car & General’s half-year profit surged to Sh2.6 billion as regional sales growth and stronger earnings from Watu boosted performance.

PWBy: Ian
IN BRIEF:
  • Car & General’s half-year profit more than quadrupled to Sh2.6 billion, from Sh637 million a year earlier, as stronger motorcycle sales growth and higher earnings from associate Watu lifted performance.
  • Revenue rose 30 per cent to Sh15.6 billion, with sales increasing 40 per cent in Kenya, 35 per cent in Uganda and 22 per cent in Tanzania as motorcycle demand remained strong across the region.
  • The company’s board declared an interim dividend of Sh1 per share payable on or about September 10, 2026 to shareholders on the register as of September 3, 2026.
Car & General (Kenya) Plc has more than quadrupled its half-year net profit to Sh2.6 billion for the period ended June 2026, driven by stronger sales across its East African operations and a sharp increase in earnings from its associate Watu.
The company reported a net profit of Sh637 million during the same period last year.
Revenue grew to Sh15.6 billion, 30 per cent growth compared to the revenue of Sh12 billion it posted during the same period last year.
The company attributed the growth in revenue to strong sales growth across its regional operations with sales growing 40 per cent in Kenya, 35 per cent in Uganda and 22 per cent in Tanzania.
Car & General said demand for its products remained strong across the region, with motorcycle sales in Kenya averaging about 12,000 units a month, up from 7,000 units in 2025.
In Tanzania, however, the company said trading in two-wheelers and three-wheelers remained subdued, while its poultry operation stabilized during the period. It expects poultry sales to improve in the second half of the year.
Gross profit rose 24 per cent to Sh2.96 billion, while operating expenses increased to Sh1.65 billion from Sh1.32 billion.
The growth in earnings was also supported by a significant rise in the group's share of profit from its associate, Watu Holdings Limited, which contributed Sh2.04 billion compared with Sh423 million a year earlier.
Car and General attributed Watu’s profit rise to growth in mobile phone financing and strong performance across Kenya, Uganda, Tanzania, the Democratic Republic of Congo, Nigeria, South Africa and Sierra Leone.
Watu Holdings Limited offers lease to own asset financing for motorcycles, three-wheelers and mobile phones.
Car and General (Kenya) Limited held a 29 per cent stake in Watu Holdings Limited which it carried in its book at Sh2.9 billion as of December 31, 2025.
The board declared an interim dividend of Sh1 per share, payable on or about September 10, 2026 to shareholders on the register as at September 3, 2026.
Car & General said it expects economic conditions in East Africa to remain broadly stable for the rest of the year, despite global geopolitical risks, inflation, exchange-rate and liquidity pressures.

    Explore more on these topics

    More from News

    MANUFACTURING11mins ago

    ABAK calls for government action over alcohol market controls

    The Alcoholic Beverages Association of Kenya (ABAK) has called for urgent government action to tighten controls in the alcohol market, citing growing concerns over product traceability, authenticity and the rising volume of beverages entering the country through parallel import channels

    BANKING33mins ago

    SBM Bank, Safer Power ink Sh2.2bn green energy manufacturing financing deal

    SBM Bank Kenya and Safer Power Group have entered into a partnership that will see the bank extend Sh2.2 billion ($17 million) financing to support green energy manufacturing workshop and construction of a factory.

    ACQUISITIONS23 Aug

    Hemas Holdings completes acquisition of 75% stake in Twiga Stationers for Sh2.86bn

    Sri Lanka's Hemas Holdings has completed the acquisition of a 75 percent stake in Twiga Stationers, the Kenyan manufacturer of the Kasuku and Crownbird stationery brands, in a deal valued at Sh2.86 billion ($22 million).

    EARNINGS23 Aug

    Scangroup half-year loss widens 22% to Sh254m

    WPP Scangroup half-year losses widened by 22 per cent to Sh254 million on lower gross profit due to reduced client spending and full year impact of lost client accounts.