BAT Kenya doubles interim dividend to Sh10 per share

BAT Kenya's profits rise by 39 per cent to Sh2.98bn in the six months to the end of June.

PWBy: Ian
BAT Kenya's offices in Industrial Area, Nairobi
BAT Kenya's offices in Industrial Area, Nairobi
IN BRIEF:
  • The company’s profit after tax grew 39 per cent to Sh2.98bn driven by Sh437 million drop in cost of operations.
  • BAT Kenya share price jumped 6.8 per cent to a high of Sh405 in early trading session on Friday before retreating and closing the day at Sh400.
  • The profit growth was driven by 5.5 per cent reduction in operational costs and a reversal of Sh720M finance cost to Sh92M in finance income.
BAT Kenya will pay shareholders an interim dividend of Sh10 per share, double compared to the Sh5 it paid last year. The company’s net revenues were flat at Sh11.7bn. Sales to the export market grew despite facing challenges such as geopolitical tensions, adverse weather conditions and currency devaluation.
In Kenya, lower purchasing power drove consumers to lower priced cigarette brands, reduced consumption and contributed to a surge in illicit trade in tax-evaded cigarettes which now accounts for 37 per cent of the market(according to a third party research).
Operational costs were down 5.5 per cent compared to last year. In December 2024, the company laid off 19 staff to improve operational efficiency.
BAT Kenya resumed selling modern oral nicotine pouches in June this year after suspending the sale of the products at the end of 2023 due to regulatory uncertainty. The company is banking on smokeless products to drive shareholder value.
The sale of oral nicotine generated revenues of Sh307M for the company in 2023 before it was suspended.
BAT Kenya share price jumped 6.8 per cent to a high of Sh405 in early trading session on Friday before retreating and closing the day at Sh400.
BAT Kenya will pay Sh10 per share on 26th September 2025 to shareholders on the register as of 29th August 2025.




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