BAT Kenya recorded a 3.1% increase in profit after tax to KES 3.08 billion in the first half of 2026, supported by improved export sales and growth in its modern oral nicotine products.
The company’s gross revenue increased by 2.6% to KES 18.96 billion, while net revenue rose by 4.6% to KES 12.27 billion.
Management attributed the performance to recovering export sales and increased sales of modern oral nicotine pouches following their relaunch in June 2025.
The growth helped offset lower domestic cigarette volumes as consumers continued shifting towards cheaper products amid pressure on household incomes.
BAT Kenya said domestic demand was affected by reduced disposable income and higher fuel prices associated with the conflict in the Middle East.
The company also estimated that illicit cigarettes accounted for approximately 45% of the Kenyan market at the end of 2025.
Operating costs increased by 6.8% to KES 8.02 billion, outpacing the growth in net revenue. The increase was linked to higher production and logistics expenses, compliance with graphic health-warning requirements and investment in a wider product portfolio.
As a result, operating profit grew by only 0.8% to KES 4.26 billion, while the operating margin declined from 36% to 34.7%.
Finance income increased by 40.2% to KES 136 million, helping profit before tax grow by 1.7% to KES 4.39 billion.
Cash generated from operations, however, declined by 5.9% to KES 3.42 billion, while net operating cash flow fell by 19.7% to KES 2.13 billion following higher tax payments.
The board maintained an interim dividend of KES 10 per share, amounting to approximately KES 1 billion. The dividend will be paid on or around September 25, 2026, to shareholders registered by August 28.
BAT Kenya exports more than 75% of its production to eight African countries, making export recovery and currency stability important to its future performance.
