Surge in Tanzania, Uganda units push EABL net profit to record Sh18.2 billion
Business
By
Graham Kajilwa
| Aug 07, 2026
Regional brewer East African Breweries Ltd (EABL) has posted a record net profit of Sh18.2 billion for the year ended June 2026. This is as the beverage manufacturer’s revenues surpassed the $1 billion mark for the first time.
The record profit was also informed by the company’s strategy to lean more towards fixed debt rather than facilities with varying interest rates, which reduced its liabilities by some Sh6 billion.
According to the financial performance posted by EABL, net sales in the period grew by 13 per cent to Sh146 billion, with the profit before tax coming to Sh27.7 billion.
Profit after tax stood at Sh18.2 billion, up from Sh12.2 billion in the previous period.
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Group Chief Executive Jane Karuku described the performance as incredible, coming against the backdrop of strained consumer spending, spiking food inflation, and macroeconomic pressures associated with geopolitics. “This is a first, and I think the highest profit we have ever delivered as a business,” she said.
She noted that unlike the previous periods when taxes were eating into their profits, the situation is different.
“We are finally in sync with the government,” she said.
Overall group sales grew by 13 per cent, with Tanzania reporting the highest growth of 44 per cent.
However, Tanzania hosts 18 per cent of EABL business, the lowest shareholding, compared to Kenya, which has 60 per cent.
Kenya, while having the largest share, grew by five per cent.
Uganda, which accounts for 22 per cent of the EABL business, grew by 16 per cent. “If you look at the picture, we have derisked, as we have always said we would from our strategy, to make sure we are not depending on Kenya. Other countries are really growing even faster than Kenya,” said Karuku.
These results have informed a final dividend of Sh8.70 per share, bringing the total dividend paid for the period to Sh12.70, a 59 per cent rise compared to the previous period.
EABL Group Chief Finance Officer Justin Mollel spoke of how relooking at the debt mix helped grow the bottom line numbers.
He said a year ago, 72 per cent of the company’s debt was floating, with 28 per cent being fixed.
“That has now changed, and 52 per cent of our debt is fixed, which gives us certainty, especially operating in an environment where there is always volatility on interest rates,” he said.
This room also grew the business’s free cash flow, closing the year at Sh22 billion.
“What is more important is the free cash flow we continue to generate. We closed the year with free cash flow of Sh22 billion, up from Sh17 billion last year,” said Mollel.
“And we continue to deleverage our business. We reduced our debt by about Sh5.8 billion, which is impressive.”
There was a hit, however, on foreign exchange at Sh1.2 billion, which he explained was as a result of exposure to the Great Britain Pound and the Euro.
“That significant chunk came from our Kenyan business. The deterioration came against the GBP and the Euro, and it is to a large extent on some of the imports that are denominated in those currencies,” he said.