NAIROBI, Kenya, Mar 2 – BAT Kenya has resumed sales of its Velo oral nicotine pouches after receiving regulatory clarity, marking a renewed push into non-combustible products as cigarette sales decline.
The company said the return of the Velo brand highlights its strategy to diversify revenue streams in a market facing increased competition from illicit tobacco products and falling cigarette consumption.
BAT Kenya reported a 10 percent drop in turnover in 2025, with revenue closing at Sh23.2 billion. The decline was largely attributed to the growing presence of illegal tobacco products in the market.
According to Finance Director Philemon Kipkemoi, Velo contributed about 1 percent of total turnover between July and December 2025, translating to roughly Sh232 million.
“Our ability to reenter the market in the second half of last year was driven by a more suitable regulatory environment that now accommodates oral nicotine products,” Kipkemoi said.
Following the divestment of its local manufacturing plant, BAT Kenya has shifted to an import model. The company currently sources Velo pouches from Pakistan but says it may reconsider local production depending on the product’s performance.
Globally, parent company British American Tobacco has recorded 34 million non-combustible product consumers by the end of 2025. This represents 68 percent of its target of 50 million users by 2030. The group aims to generate 50 percent of its revenue from non-combustible products by 2035, up from the current 18 percent.
In Kenya, Kipkemoi projects that Velo could account for between 15 and 25 percent of total revenue within the next three to five years.
The resumption of sales forms part of BAT Kenya’s broader strategy to expand alternative nicotine products while complying with evolving regulations and responding to changing consumer preferences.
