British American Tobacco (BAT) Kenya shareholders will pocket Ksh 50 per share in dividends despite the firm reporting a 19pc reduction in its 2024 full year net profit to Ksh 4.48 billion.
The firm blames illicit trade and strengthening of the shilling as reasons for the profit dip.
BAT says regulatory uncertainty, illicit trade in tax evaded cigarettes and lower consumer purchasing power were factors that influenced the reduction of its 2024 net profit from Ksh 5.57 billion in 2023.
Finance costs rose sharply by Ksh 955 million to Ksh 800 million on account of appreciation of the Kenyan shilling against the dollar during the first three months of 2024.
In addition, the firm paid Ksh 2 billion in income tax expense.
Despite the reduced profits, shareholders will receive Ksh 50 per share in June this year, which is the same amount as what they received last year.
BAT is urging the government to intensify enforcement efforts and has pledged to collaborate with relevant agencies of neighbouring countries to fight illicit trade.
