BAT Kenya Doubles Dividend to Kes10 per Share

• BAT Kenya Doubles Dividend to Sh10 per Share

British American Tobacco Kenya (BAT Kenya) has doubled its interim dividend to Sh10 per share on the strength of enhanced half-year results, after recording Sh4.3 billion.

The dividend, up from Sh5 per share in the same period last year, reflects the cigarette manufacturer’s dedication to offering shareholders consistent returns and banking on operational efficiency amid a challenging market.

The company recorded post-tax earnings of Sh2.983 billion during the half-year to June 2025, a 39.7 percent increase from Sh2.136 billion in the corresponding period last year.

This was supported by reduced financing expenses, flat revenues, and improved operating expense management, the Nairobi Securities Exchange (NSE)-listed firm said.

BAT said the dividend declaration aligned with its value-preserving strategy to shareholders and was evidence of confidence in the resilience of its core business.

“The interim dividend, being liable to withholding tax, will be paid on or about September 26, 2025, to shareholders registered at the close of business on 29 August 2025,” BAT said.

Investors were optimistic after the results, causing the company’s share price to jump 5.08 percent to Sh398.50.

BAT secured a spot In the top five biggest gainers on the NSE for the week through its rally.

The company’s performance coincides with increased activity on the bourse, but BAT’s upsurge was propelled independently by internal efficiencies and financial discipline, not by overall market trends.

While other entities such as Sameer Africa and Crown Paints also recorded profits, it was BAT’s dividend action that caught the attention of investors in an era where a number of listed companies have delayed pay-outs in the wake of economic uncertainty.

BAT’s resilient cash flow base, supported by brand loyalty and cost control, has preserved it in a business often at the mercy of regulation and tax burdens.

The strong interim performance sets the stage for its full-year aspirations, with shareholders set to anticipate a decent final dividend if the pattern persists.

With the NSE gearing up for wider reforms under the government’s privatisation programme, BAT’s performance underscores the capacity of established “blue chips” to deliver consistent returns through internal discipline rather than policy alterations.

With its dividend already among the most generous on the exchange, the company has once again become a benchmark for income-seeking investors.