Listed mobility and equipment distributor Car & General (Kenya) Plc more than quadrupled its half-year profit to KSh 2.60 billion in the six months to June 2026, as revenue rose 30% to KSh 15.64 billion and its share of profit from associate Watu surged nearly fivefold to KSh 2.04 billion.
- •Car & General’s share of profit from Watu Credit jumped 382% from KSh 423 million a year earlier and has risen from just KSh 114 million in H1 2024.
- •Profit after tax has risen from just KSh 62 million in H1 2024 to KSh 637 million in H1 2025 and KSh 2.60 billion this year, while earnings per share increased from KSh 0.78 to KSh 7.93 and KSh 32.26 over the same period.
- • H1 2026 profit also surpassed the KSh 2.45 billion Car & General earned in the whole of FY2025.
The earnings jump was reinforced by a sharp recovery in Kenya motorcycle sales, which averaged 12,000 units a month from 7,000 a year earlier, and lower finance costs.
Watu has become the biggest swing factor in that performance. Car & General’s management attributed the associate’s rapid increase to growth in mobile-phone financing and performance across Watu’s African markets. Watu is active in Kenya, Uganda, Tanzania, DRC, Nigeria and Sierra Leone, with operations also opened in Rwanda and South Africa.
The core trading business strengthened alongside Watu with sales growing 40% in Kenya, 35% in Uganda and 22% in Tanzania, with Uganda reversing a 24% decline recorded a year earlier. Kenya motorcycle sales accelerated to an average 12,000 units monthly from 7,000 in 2025 and 4,600 in 2024. Volumes, however, remain below the roughly 20,000 monthly peak reported in 2022, leaving room for further recovery.
Lower financing pressure provided another boost. Finance costs declined 21.7% to KSh 574 million, while management said exchange-rate stability improved its ability to control margins. Operating cash flow more than doubled to about KSh 1.97 billion, providing cash backing to the broader earnings improvement.
Elsewhere, helmet manufacturer Boda Plus progressed from being EBITDA-positive in H1 2025 to profitable, supported by the Kenyan motorcycle recovery and exports to Uganda, Tanzania, DRC, Rwanda and Burundi. Tanzania poultry sales grew 3.5%, while the group continued investments in electric two- and three-wheelers, LPG three-wheelers in Kenya and CNG three-wheelers in Tanzania.
Car & General is also pursuing further disposals from its 22.5-acre Shanzu property holding as part of balance-sheet optimisation. The company expects East African inflation, foreign exchange and liquidity conditions to remain broadly stable through the rest of 2026.
The board raised the interim dividend 233% to KSh 1.00 per share from KSh 0.30, with payment scheduled for September 10.
