BAT Kenya has today announced its half year results for the six months ending 30th June 2020. The company has posted a gross revenue of Ksh16.6 Billion, profit before tax of Ksh3.7 Billion and contribution to Government revenue of Ksh7.4 Billion. Shareholders will be paid on 18th September 2020 and will enjoy an interim dividend of Ksh3.50 per share, subject to withholding tax.
One of the major challenges facing BAT is the increase of illegal tax-evaded cigarettes being smuggled into the country. One would think that the border controls put in place because of COVID-19 would stem this problem but this is not the case. Even before the pandemic came around, at the end of last year for example more than 90% of illegal cigarettes sold in Kenya are smuggled across the Ugandan border.
This shows that border enforcement alone is not enough to stop the illicit cigarette trading and BAT is urging the authorities to double their enforcement efforts and enhance cooperating with Uganda to stem the flow of these products into Kenya. Someone somewhere knows the routes that are being used.
Illegal cigarettes continue to deny the Government in excess of KSh 2.5 billion every year. And in this time of Covid-19, this is money that is really needed to support economic recovery.
“I am pleased to report that BAT Kenya’s business continues to show resilience despite the difficult operating environment in Kenya and our export markets. Despite such impacts, profit before tax increased by 1.5% to KSh 3.7 billion, with the decline in revenue mitigated by productivity savings initiatives and prudent cost management measures,”
BAT Kenya Managing Director, Beverley Spencer-Obatoyinbo.
“The resilient performance of our business reflects our commitment to build a sustainable business that contributes to Kenya’s manufacturing and economic growth. As we navigate the COVID-19 pandemic, our primary focus is to ensure the safety of our employees, maintain business continuity and work with relevant Government agencies to ensure a stable and predictable regulatory environment.
“Looking forwards, I am confident that with our sustained investment in our cigarette business and new product categories, including our tobacco-free modern oral nicotine pouch, the exceptional quality of talent within the Company, and our partnerships with over 80,000 business partners and tobacco farmers, we have the right strategy in place to deliver a better tomorrow for consumers, society, employees and shareholders.”
BAT Kenya Chairman, George Maina.
