Car and General PLC Profit Surges to Ksh 2.6 Billion as Revenue Jumps 30%

Car & General (Kenya) PLC has reported a sharp increase in profitability after its profit after tax rose to Ksh 2.604454 billion in the six months ended June 30, 2026, from Ksh 637.063 million recorded in the same period in 2025.

Revenue also increased by 30% to Ksh 15.636492 billion from Ksh 12.025936 billion. The company reported sales growth of 40% in Kenya, 35% in Uganda and 22% in Tanzania, while poultry sales in Tanzania increased by 3.5%.

The company attributed the improved performance partly to stronger operations across the region and higher profits from its associate, Watu, whose mobile-phone financing business continued to grow across several African markets.

“Profit after tax was Ksh 2.6 billion, compared with Ksh 637 million in the previous period. It has been a positive period for operations throughout the region. Profits from our associate, Watu, increased significantly, driven by the growth of mobile-phone financing and good performance in Kenya, Uganda, Tanzania, DRC, Nigeria, South Africa, and Sierra Leone,” the company said in its results commentary.

Car & General PLC Motorcycle Sales Rise in Kenya

Meanwhile, Kenya’s motorcycle business recorded significant growth, with average monthly sales increasing to 12,000 units in 2026 from 7,000 units in 2025.

The company said the increase created a significant opportunity for future growth. It also reported that exchange-rate stability helped it maintain greater control over its margins.

“Most notably, Kenya motorcycle sales grew to an average of 12,000 units per month in 2026, up from 7,000 units per month in 2025. This represents a significant opportunity going forward. Exchange-rate stability has also been beneficial, affording us greater control over our margins,” the company said.

In Tanzania, two-wheeler and three-wheeler sales recorded modest growth. The company also reported that its poultry operation stabilized, with production of day-old chicks and demand remaining steady.

“The poultry operation in Tanzania has stabilized and is progressing positively. Production of day-old chicks and demand have remained stable, which accounts for the limited sales growth. We expect production to grow further in the second half of the year,” the company said.

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Profitability Improves as Associate Earnings Rise

The improved earnings came despite higher operating costs. Gross profit increased to Ksh 2.961747 billion from Ksh 2.122976 billion, while operating expenses rose to Ksh 1.649972 billion from Ksh 1.324259 billion.

However, the share of profit from an associate jumped to Ksh 2.038692 billion from Ksh 422.695 million.

Consequently, profit before finance costs, net foreign exchange gains or losses and taxation increased to Ksh 3.380264 billion from Ksh 1.351435 billion.

Finance costs declined to Ksh 573.729 million from Ksh 732.757 million, while net foreign exchange gains stood at Ksh 69.176 million compared with Ksh 101.141 million.

Profit before taxation consequently rose to Ksh 2.875711 billion from Ksh 753.831 million. Basic and diluted earnings per share also increased to Ksh 32.26 from Ksh 7.93, while EBITDA rose to Ksh 3.560086 billion from Ksh 1.536049 billion.

Total comprehensive income increased to Ksh 2.483230 billion from Ksh 505.691 million.

Watu, Beta Plus and Clean Energy Investments Grow

Beyond its core trading operations, the group continued expanding its Watu investment in Kenya, Uganda, Tanzania, DRC, Nigeria and Sierra Leone. It also opened operations in Rwanda and South Africa.

Its helmet-manufacturing subsidiary, Beta Plus, became profitable and now exports to Uganda, Tanzania, DRC, Rwanda and Burundi. The partial recovery of the Kenyan market also supported its improved performance.

At the same time, investments in electric two-wheelers and three-wheelers, LPG three-wheelers in Kenya and CNG three-wheelers in Tanzania received a positive response.

“Our investments in two-wheeler and three-wheeler electric vehicles, in liquefied petroleum gas (LPG) three-wheelers (in Kenya) and in compressed-natural-gas (CNG) three-wheelers (in Tanzania) have met with a positive response. With our financing capabilities, we are confident that we can drive the transition to cleaner energy in the two-wheeler and three-wheeler markets across the continent. Infrastructure for both electric charging and gas supply is being developed and needs to be accelerated to promote exponential growth,” the company said in its results commentary.

The group reported that more than 5 million customers use its products and services.

Investment Property and Balance Sheet Strengthen

On its property portfolio, Nairobi Mega on Uhuru Highway maintained stable footfall. Car & General holds 22.5 acres in Shanzu after selling 1.5 acres in 2026 and plans to reduce part of the holding by the end of the financial year.

The company said completion of the Mombasa–Malindi highway, expected in 2027, would further enhance the value of the property.

Total non-current assets increased to Ksh 12.933156 billion from Ksh 8.952466 billion. Property, plant and equipment rose to Ksh 3.495328 billion, while other non-current assets increased to Ksh 5.684005 billion.

Current assets stood at Ksh 11.550191 billion against current liabilities of Ksh 10.602966 billion. Total equity increased to Ksh 10.492719 billion from Ksh 6.255663 billion, while reserves and retained earnings rose to Ksh 9.807544 billion from Ksh 5.588026 billion.

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Operating Cash Flow of Car & General Rises

The stronger performance also boosted operating cash flow. Net cash generated from operating activities increased to Ksh 1.965756 billion from Ksh 899.665 million.

The group used Ksh 219.039 million in investing activities and Ksh 1.588814 billion in financing activities. Despite the financing outflow, cash and cash equivalents increased to Ksh 674.522 million at June 30, 2026, from Ksh 190.510 million a year earlier.

The board also approved an interim dividend of Ksh 1.00 per share, payable on or about September 10, 2026, to shareholders registered as of September 3, 2026.

Looking ahead, the company expects economic conditions in East Africa to remain stable in terms of inflation, foreign exchange and liquidity for the rest of 2026.

It plans to increase market share across its product lines while using its diversified businesses to support profitability.

“Despite unpredictable global geopolitics, we expect economic conditions in East Africa to remain stable in terms of inflation, foreign exchange, and liquidity for the rest of the year. We will drive growth across all product lines and businesses to increase market share. In the near term, we will leverage the diversity of our businesses to increase Group profitability,” the company stated.

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