Car & General (Kenya) Plc has more than quadrupled its half-year net profit to Sh2.6 billion for the period ended June 2026, driven by stronger sales across its East African operations and a sharp increase in earnings from its associate Watu.
The company reported a net profit of Sh637 million during the same period last year.
Revenue grew to Sh15.6 billion, 30 per cent growth compared to the revenue of Sh12 billion it posted during the same period last year.
The company attributed the growth in revenue to strong sales growth across its regional operations with sales growing 40 per cent in Kenya, 35 per cent in Uganda and 22 per cent in Tanzania.
Car & General said demand for its products remained strong across the region, with motorcycle sales in Kenya averaging about 12,000 units a month, up from 7,000 units in 2025.
In Tanzania, however, the company said trading in two-wheelers and three-wheelers remained subdued, while its poultry operation stabilized during the period. It expects poultry sales to improve in the second half of the year.
Gross profit rose 24 per cent to Sh2.96 billion, while operating expenses increased to Sh1.65 billion from Sh1.32 billion.
The growth in earnings was also supported by a significant rise in the group's share of profit from its associate, Watu Holdings Limited, which contributed Sh2.04 billion compared with Sh423 million a year earlier.
Car and General attributed Watu’s profit rise to growth in mobile phone financing and strong performance across Kenya, Uganda, Tanzania, the Democratic Republic of Congo, Nigeria, South Africa and Sierra Leone.
Watu Holdings Limited offers lease to own asset financing for motorcycles, three-wheelers and mobile phones.
Car and General (Kenya) Limited held a 29 per cent stake in Watu Holdings Limited which it carried in its book at Sh2.9 billion as of December 31, 2025.
The board declared an interim dividend of Sh1 per share, payable on or about September 10, 2026 to shareholders on the register as at September 3, 2026.
Car & General said it expects economic conditions in East Africa to remain broadly stable for the rest of the year, despite global geopolitical risks, inflation, exchange-rate and liquidity pressures.
