BAT Kenya has announced a total dividend of Sh70 per share after recording an 18 percent increase in gross profit for the year ended December 31, 2025.
The cigarette manufacturer posted a gross profit of Sh7.7 billion, up from the previous year. However, net revenue fell by 10 percent to Sh23.2 billion from Sh25.7 billion.
The company attributed the drop in revenue to the rising presence of illicit cigarettes in the local market.
Operating costs declined by 15 percent to Sh15.7 billion. The reduction was supported by lower sales volumes, cost control measures and productivity improvements implemented during the year.
BAT Kenya also recorded Sh200 million in finance income, compared to an Sh80 million foreign exchange loss in the previous period. The improvement was linked to relative stability of the Kenyan shilling against the US dollar and better cash management.
Managing Director Crispin Achola said the company delivered positive results despite a difficult operating environment.
“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,” Achola said.
He noted that the prevalence of illicit cigarettes has increased to 45 percent of the domestic market, up from 37 percent in 2024, according to third-party research.
Achola added that the illegal cigarette trade is estimated to cost the government about Sh12 billion each year in lost tax revenue.
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