BAT Kenya plans to increase the proportion of tobacco leaf it procures from the local market to at least 70 percent this year as the company’s outgoing leadership focuses on tightening cost controls and strengthening profitability.
The cigarette manufacturer sourced about 60 percent of its tobacco leaf domestically in 2025, up from 55 percent the previous year. Management says the shift towards local sourcing helped cut operating expenses by 14.3 percent to Sh15.7 billion.
Outgoing managing director Crispin Achola noted that the company had also resumed sales of modern oral nicotine pouches in the second half of 2025, contributing to a 17 percent rise in net earnings. As his tenure draws to a close, improving operational efficiency remains a central priority.
Achola said his leadership agenda over the past five and a half years focused first on reintroducing the company’s new category products in a sustainable manner, a goal he believes has now been achieved.
He added that the second priority was delivering strong commercial performance, saying the company now sits on a stable footing with robust earnings, steady cash flows and a debt-free balance sheet.
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Outgoing finance director Philemon Kipkemoi said increasing local sourcing of tobacco leaf not only protects the company’s profit margins but also raises incomes for the farmers supplying the crop.
According to Kipkemoi, tobacco leaf accounts for a large share of BAT Kenya’s raw material costs, and sourcing locally brings notable savings.
He explained that every kilogramme of tobacco obtained from Kenyan farmers instead of imports saves the company roughly two pounds sterling, adding that the strategy ultimately channels more income to the farmers.
BAT Kenya recently confirmed that Achola will step down as managing director on June 15, while Kipkemoi will exit the finance director role on March 31.
Sidney Wafula, currently finance director for BAT Sub-Saharan Africa, will assume the role of managing director, while Catherine Chepkong’a will take over as finance director.
