BAT Kenya publishes 2025 performance report, profit before tax up 18% despite significant illicit trade headwinds

BAT Kenya has reported a strong financial performance for the year ended 31 December 2025, driven by effective cost management and lower finance costs despite a challenging operating environment dominated by a marked increase in illicit trade. 

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

Net revenue dropped by 10% from 25.7 billion to Ksh 23.2 billion, driven by growing incidence of illicit cigarettes in the domestic market.

Total cost of operations decreased by 15% to KShs 15.7 billion, reflecting lower sales volumes, effective cost management and productivity initiatives implemented during the period. 

During the period, the company recorded a finance income of KShs 0.2 billion, a significant improvement from KShs 0.8 billion exchange loss in the prior period, driven by Kenyan Shilling stability against the US Dollar and prudent cash management. 

Despite the challenges, the company has maintained its strong dividend position with an expected total dividend payout of KShs. 70 per share, affirming the BAT Kenya stock as one of the highest yielding on the Nairobi Securities Exchange (NSE).