BOC Kenya has delivered a mixed financial performance in the first half of 2026, with the industrial and medical gases producer increasing its interim dividend by 60% even as profits fell sharply. The company’s net profit dropped 39.8% to KSh 100.4 million, marking the end of a five-year streak of first-half profit growth.
Revenue also weakened during the period, falling 17.2% to KSh 600 million from KSh 725 million a year earlier, while profit before tax declined 37.4% to KSh 157.6 million. BOC attributed the pressure largely to the completion of customer engineering projects that had boosted its record 2025 performance, as well as higher fuel, energy and inflation-related costs. Overheads rose 17.3% to KSh 190.8 million.
The decline comes after a particularly strong 2025 for BOC Kenya, when annual profit after tax jumped 48.4% to KSh 314 million and revenue climbed 18.5% to KSh 1.43 billion. That performance was supported by stronger demand for medical and industrial gases and income from customer engineering projects. The latest results therefore represent a significant shift from the company’s record-setting performance last year.
Despite weaker earnings, BOC’s cash position improved considerably. Cash generated from operations increased 38.9% to KSh 291.6 million, while net operating cash flow rose 40.3% to KSh 236.3 million. Cash and cash equivalents stood at KSh 1.29 billion at the end of June, up nearly 50% from KSh 863 million a year earlier. The stronger liquidity gave the company room to reward shareholders with a higher interim dividend of KSh 4 per share, compared with KSh 2.50 previously.
BOC Kenya says its strategy to strengthen its core business is gaining momentum in the second half of the year after getting off to a slower-than-expected start. The company is targeting increased demand for medical gases as well as opportunities in manufacturing, agriculture and fabrication. By expanding recurring revenue beyond large engineering projects, BOC hopes to rebuild growth, strengthen earnings and turn around the pressure seen in the first half of 2026.
source: kenyanwallstreet
