BAT Kenya posted a 5 percent increase in net revenue to Sh12.3 billion in the first half of 2026, supported by stronger export sales and growing demand for its modern oral nicotine pouch products.
The tobacco manufacturer said the improved performance came despite a difficult business environment marked by rising illicit cigarette trade, weak consumer spending and inflationary pressures linked to broader economic challenges and the ongoing conflict in the Middle East.
The company also reported a 2 percent increase in profit before tax to Sh4.4 billion, driven by higher operating profit and increased finance income.
Following the improved performance, the Board of Directors declared an interim dividend of Sh10 per share.
BAT Kenya Managing Director Sidney Wafula said the rapid growth of illicit cigarette trade remains the biggest challenge facing the country’s legitimate tobacco industry.
“In the domestic market, the growth in illicit cigarettes, estimated at 45 percent as at the end of 2025 according to third-party research, remains the most significant threat to the sustainability of the legitimate industry and supported value chains. This denies the Government much-needed revenue estimated at Sh12 billion annually,” Wafula said.
He called for stronger collaboration among government agencies to curb the illegal trade, saying existing enforcement measures have not been sufficient to stop its expansion.
“Whilst effort has been made by relevant Government agencies to address illicit cigarette trade, the continued proliferation highlights the urgent need for decisive, sustained and coordinated action to reverse this trend,” he said.
Wafula added that BAT Kenya remains committed to working with authorities to strengthen enforcement and create a more predictable business environment that protects government revenue, supports legitimate businesses and promotes economic growth.
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