British American Tobacco Kenya has raised its interim dividend by 100 per cent to Sh10 per share, riding on stronger half-year results that saw the company earn Sh4.3 billion.

The payout, up from Sh5 per share in the same period last year, reflects the cigarette maker’s focus on delivering consistent shareholder returns and leveraging operational efficiency to weather a challenging market.

The firm reported a post-tax profit of Sh2.983 billion for the six months to June 2025, marking a 39.7 per cent increase from Sh2.136 billion in the previous year.

According to the Nairobi Securities Exchange-listed company, the growth was supported by reduced financing expenses, steady revenue streams, and tighter control of operating costs.

BAT said the dividend declaration was aligned with its strategy of ensuring value to shareholders while demonstrating confidence in the resilience of its core business.

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“The interim dividend, which is subject to withholding tax, will be paid on or about September 26, 2025, to shareholders on the register as at the close of business on 29 August 2025,” BAT said.

Investors responded positively to the news, with the company’s share price climbing by 5.08 per cent to close at Sh398.50 on Friday.

The rally placed BAT among the top five gainers on the NSE during the week.

The company’s performance comes at a time of heightened activity on the bourse, but BAT’s rise was driven independently by internal efficiencies and financial prudence rather than general market trends.

Analysts noted that the dividend increase served as a strong signal of management’s confidence in future earnings capacity and cash flows.

While other firms such as Sameer Africa and Crown Paints also reported gains, it was BAT’s dividend decision that captured investor attention, especially in a climate where many listed companies have held off on distributions due to economic uncertainty.

BAT’s consistent revenue base, supported by brand loyalty and cost discipline, has helped it maintain stability in a sector often under regulatory and taxation pressures.

The strong interim result sets the tone for its full-year expectations, with shareholders likely to anticipate a robust final dividend if the trajectory holds.

As the NSE braces for broader reforms tied to the government’s privatisation drive, BAT’s performance underscores the potential of established firms to deliver solid returns through internal discipline rather than external policy shifts.

With its dividend already among the most generous on the exchange, the company has once again positioned itself as a beacon of reliability for income-focused investors.