The Lower Eastern Times Opening The Third Eye
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BAT Kenya has announced a dividend of Sh70 per share following an 18% increase in gross profit for the year ending December 31, 2025.
The cigarette manufacturer posted a gross profit of Sh7.7 billion, up from the previous year, even as net revenue fell 10% to Sh23.2 billion from Sh25.7 billion. The company attributed the revenue drop to the rising circulation of illicit cigarettes in the local market.
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Operating costs declined by 15% to Sh15.7 billion, supported by lower sales volumes, cost management strategies, and productivity improvements implemented during the year.
The firm also recorded Sh200 million in finance income, a turnaround from an Sh80 million exchange loss the previous year, aided by the relative stability of the Kenyan shilling against the US dollar and improved cash management.
“I am pleased to report that despite a challenging market driven by the growth of illicit cigarettes, the company posted positive results,” said Managing Director Crispin Achola.
Achola highlighted that the share of illicit cigarettes in the domestic market has increased from 37% in 2024 to 45% in 2025, citing third-party research, and noted that the illegal trade costs the government an estimated Sh12 billion annually in lost revenue.
