NAIROBI, Kenya – BAT Kenya has announced a total dividend of Sh70 per share after posting an 18 percent rise in gross profit for the year ended December 31, 2025.
The cigarette manufacturer reported gross profit of Sh7.7 billion, up from the previous year, despite a 10 percent drop in net revenue to Sh23.2 billion from Sh25.7 billion.
The company attributed the revenue decline to the growing prevalence of illicit cigarettes in the domestic market.
Operating costs fell 15 percent to Sh15.7 billion, supported by lower sales volumes, cost control measures and productivity initiatives undertaken during the year.
The firm also recorded Sh200 million in finance income, a turnaround from an Sh80 million exchange loss previously, helped by relative stability of the Kenyan shilling against the US dollar and improved cash management.
“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,” said Managing Director Crispin Achola.
Achola noted that illicit cigarette prevalence has risen to 45 percent of the domestic market from 37 percent in 2024, citing third-party research.
He said the illegal trade is estimated to cost the government about Sh12 billion annually in lost revenue.
