BAT shareholders okay record dividend

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British American Tobacco (BAT) Kenya shareholders have approved a final dividend of Sh60 per share for the year ended December 31, 2025.  

The shareholders’ approval, given at the company’s 74th Annual General Meeting (AGM), brings the total dividend payout to Sh70 per share, making it the highest-ever dividend payout by BAT Kenya. 

The dividend payout follows BAT Kenya’s strong profit growth for the period, driven by effective cost management and lower finance costs, which more than offset the adverse impact of a marked rise in the incidence of illicit tobacco trade to 45 per cent of the total market in 2025. 

During the period, profit before tax rose to Sh7.7 billion, up from Sh6.5 billion in the previous year, representing an 18 per cent increase.  

BAT Kenya Managing Director Crispin Achola said 2025 was a remarkable year for the company despite a challenging operating environment in which the illicit trade in tobacco continues to grow. 

“The rise in illicit cigarette trade remains a significant global and domestic challenge. 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,” he said in a statement. 

He further noted the company’s sustainability efforts, where during the period it paid Sh1.4 billion to farmers for tobacco leaf purchases across the country, up from Sh1.1 billion in the previous year.  

The statement points out that through sustainable agriculture initiatives, 100 per cent of all BAT Kenya contracted farmers are now growing alternative crops alongside tobacco, compared to 98 per cent in the previous year.

“This has been achieved through farmer training on crop diversification and sustainable practices,” said the cigarette maker. 

The company documents its role in advancing its Building a Smokeless World initiative, which focuses on accelerating tobacco harm reduction through science-based innovation. 

It highlights the successful relaunch of VELO oral nicotine pouches in Kenya, alongside continued advocacy for progressive, evidence-based regulation.  

“Combatting the illicit cigarettes trade will continue to be a top priority given its impact on government revenue and the sustainability of legitimate businesses,” said the firm.

“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.”