NAIROBI, Kenya, July 23 – BAT Kenya’s net revenue rose 5 percent to Sh12.3 billion in the first half of 2026, driven by a recovery in export sales and growing demand for its modern oral nicotine pouches.
The improved performance came despite a challenging operating environment marked by rising illicit cigarette trade, weak consumer spending and inflationary pressures linked to broader macroeconomic challenges and the ongoing Middle East conflict.
BAT Kenya Managing Director Sidney Wafula said the rapid growth of illicit cigarette trade remains the biggest threat to 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.
The Board of Director also announced an interim dividend of Sh10 per share after its profit before tax grew by 2 percent to Sh4.4 billion, supported by higher operating profit and increased finance income.
Wafula called for stronger and more coordinated enforcement to tackle illicit cigarette trade, saying current efforts have not been sufficient to stem its growth.
“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.
“We remain committed to supporting efforts aimed at strengthening enforcement to create a more predictable, compliant and sustainable operating environment that safeguards public revenues, legitimate businesses and economic growth.”
