BUSINESSSTOCKS

BAT Kenya Announces Highest Ever Dividend Payout to Shareholders

Share
Share

BAT Kenya shareholders have today approved a final dividend of Ksh 60 per share for the year ended 31st December 2025. The shareholders’ approval, given today at the company’s 74th Annual General Meeting (AGM), brings the total dividend payout to KSh 70 per share, making it the highest dividend payout by BAT Kenya.

The dividend payout comes after BAT Kenya’s strong profit growth for the year ended 31st December 2025, driven by effective cost management and lower finance costs.

During the period, profit before tax rose to KSh 7.7 billion, up from KSh 6.5 billion in the previous year, an 18% increase.

BAT Kenya Managing Director Crispin Achola, said 2025 was a remarkable year for BAT Kenya. Despite a challenging operating environment in which the illicit trade in tobacco continued to grow, the company delivered strong financial performance for the year ended 31 December 2025, he added.

Read Also >> How Fuel Prices Would Look Like Without Government Subsidy

Mr Achola said these results were driven by effective cost management and lower financing costs.

“The year was, however, marked by a continued rise in illicit cigarette trade, which remains a significant global and domestic challenge,” he added. “We continue to engage with relevant stakeholders and government agencies in support of efforts to strengthen appropriate enforcement action and drive a more stable and compliant operating environment.”

Sustainability and impact

BAT Kenya continues to strengthen livelihoods across its value chain, supporting over 80,000 dependents and beneficiaries, contributing to their overall well-being and economic development. During the period, BAT Kenya paid KSh 1.4 billion to farmers for tobacco leaf purchases across the country, up from KSh 1.1 billion paid the previous year.

Through its sustainable agriculture initiatives, 100% of all BAT Kenya contracted farmers are now growing alternative crops alongside tobacco, compared to 98% in the previous year.

This has been achieved through farmer training on crop diversification and sustainable practices. The company’s Rural Women Development Programme (RuWDep) also expanded, reaching 334 participants in 2025 with capacity building, financial literacy, and income diversification opportunities.

The company also made notable progress in waste reduction and circularity, reducing total waste to 1,105.6 tonnes in 2025 from 1,151.8 tonnes in 2024. Of this, 1,095 tonnes (99%) were recycled, with zero waste sent to landfill.

Outlook and strategic focus

BAT Kenya remains focused on delivering sustainable value while advancing BAT’s global purpose of realising A Better Tomorrow™ by Building a Smokeless World. This means a focus on accelerating Tobacco Harm Reduction through science-based innovation, highlighted by the successful relaunch of VELO™ oral nicotine pouches in Kenya, alongside continued advocacy for progressive, evidence-based regulation.

That said, combatting illicit cigarettes trade will continue to be a top priority given its impact on government revenue and the sustainability of legitimate businesses. Whilst efforts have been made by relevant Government agencies to address the growing challenge of illicit trade, more robust measures and enhanced enforcement actions are required to arrest the menace.

Next Read >> Kenya Government Rolls Out Ebola Isolation Centres

Written by
BT Correspondent

editor [at] businesstoday.co.ke

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
Black professionals work on corporate compliance strategies together.
BUSINESSOPINION

How Compliance Is Becoming a Major Operating Expense for Businesses

Running a business today is no longer just about selling a great...

Businesses should treat cash flow like your most valuable asset.
BUSINESSOPINION

How Businesses Can Grow Without Taking on More Debt

For many business owners, growth and borrowing seem to go hand in...

Judge striking court gavel. PHOTO/Pexels
BUSINESS

Court: Unlicensed Loan Apps Cannot Sue Borrowers

Digital lenders that are not licensed by the Central Bank of Kenya...

Fred Kithinzi is the Founder and Group CEO of Belva Digital, an award-winning marketing and technology services company based in Nairobi
NEWSTECHNOLOGY

Kenyan Tech Firm Belva Digital, WildMango Stand Out at Global Hackathon

Belva Digital, in partnership with WildMango, has been awarded a Distinction for...