BOC Kenya’s board raised its interim dividend by 60% to KSh4.00 per share for the six months to June 2026, even as profit after tax fell 39.8% to KSh100.4 million. The industrial and medical gas producer’s revenue dropped 17.2% to KSh600.01 million, largely because a batch of one off customer engineering projects that boosted last year’s numbers did not repeat.
The unaudited results, released on 20 August 2026, mark a sharp reversal from the record year BOC Kenya reported in December 2025, when full year net profit hit KSh314 million, its strongest performance in more than five decades on the Nairobi Securities Exchange.
The Numbers
| Metric (KSh) | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Revenue | 600.01M | 724.95M | -17.2% |
| Gross profit | 330.54M | 392.36M | -15.8% |
| Profit before tax | 157.55M | 251.62M | -37.4% |
| Profit after tax | 100.38M | 166.73M | -39.8% |
| Earnings per share | 5.14 | 8.54 | -39.8% |
| Net cash from operations | 236.32M | 168.50M | +40.3% |
| Cash and equivalents | 1.29B | 862.95M | +49.5% |
| Interim dividend | 4.00 | 2.50 | +60.0% |
Why Profit Fell
Revenue slipped mainly because the comparative period included large customer engineering projects that did not recur this year, the company said. Strip those one off contracts out and the underlying gas business held up, but the gap was wide enough to drag gross profit down 15.8% to KSh330.5 million.
Distribution, selling and administrative expenses moved the other way, climbing 17% as inflation, fuel costs and energy prices pushed overheads higher. Squeezed from both sides, earnings before finance income and tax fell to KSh139.7 million from KSh229.7 million a year earlier, and profit before tax dropped to KSh157.6 million from KSh251.6 million.
Gross margin still edged up slightly to 55.1% from 54.1%, evidence that pricing and cost control held even as volumes softened.
Cash Position Strengthens
Despite the profit decline, BOC Kenya’s cash generation improved. Net cash from operating activities rose 40.3% to KSh236.3 million, helped by stronger cash collection from operations, which climbed to KSh291.6 million from KSh209.9 million. Cash and cash equivalents closed the half at KSh1.29 billion, up from KSh862.95 million a year earlier and well above the KSh1.05 billion the company held at the start of the year.
Total assets grew to KSh2.74 billion from KSh2.58 billion at the end of December 2025, and total equity rose to KSh2.34 billion from KSh2.20 billion, giving the board room to lift the payout even as earnings fell.
Dividend And Payment Details
The board declared an interim dividend of KSh4.00 per share, up from KSh2.50 in H1 2025, payable net of withholding tax on or about 19 October 2026 to shareholders on the register at the close of business on 21 September 2026.
The increase follows a pattern of rising payouts at BOC Kenya. The company more than doubled its interim payout in 2025 after half year profit surged 170% on strong gas demand, then closed FY2025 with a record total dividend of KSh12.85 per share, the largest in the company’s history.
What Management Is Saying
Company Secretary Ruth Ngobi, signing on behalf of the board, said the unaudited statements follow accounting policies consistent with the group’s most recent audited financial statements. Management said the business remains focused on delivering quality products and services while executing its growth strategy in a disciplined way.
The board said its shift toward the core gas business started slowly in the first half but is gaining momentum heading into the second half. That acceleration is expected to support revenue growth, sharpen earnings quality and offset some of the drag from the completed engineering projects. The company also pointed to deeper partnerships across the industry as a way to widen its market reach and support long term growth.
Outlook
BOC Kenya enters the second half carrying a stronger balance sheet and a growing cash pile, but the drop in revenue and profit shows how reliant the company had become on one off project work. Whether the core gas business can pick up the slack, as management expects, will determine if the rising dividend can be sustained without leaning further on cash reserves.
