Cigarette maker, BAT Kenya's net profit for the first half of 2019 grew by 25.5 per cent to 2.528 billion from Sh2.014 billion same period last year.
The cigarette company attributed this growth to an increase in the company’s shareholder value in the country despite the challenging environment.
“A stable tax environment in Kenya is critical for the growth of business and also for the sustainable growth of manufacturing - one of the pillars of President ’s “Big Four” agenda,” said BAT Kenya managing director, Beverley Spencer-Obatoyinbo at the company’s investor briefing yesterday.
She added that the company is surprised and disappointed by the 15 per cent increase in excise duty rates on cigarettes, wines and spirits, which was proposed in the Finance Bill 2019.
The excise duty on a packet of 20 stick of cigarettes received an additional excise tax of Sh8 making the new rate Sh61.
The company’s gross revenue also grew by 10.1 per cent to Sh 19.2billion during the period under review on excise-led pricing impacts in Kenya and Somalia coupled with cut rag sales to Sudan.
“As we continue into 2019 and onwards, BAT Kenya remains committed to building a sustainable business which contributes to economic growth and delivers value for its shareholders,” BAT Kenya chairman, George Maina said.
