The share price of diversified dealer Car & General (C&G) rallied by 20 percent during trading on the Nairobi Securities Exchange (NSE) on Thursday, driven by a fourfold growth in dividend payout by the firm.
The company shares traded at a high of Sh78 each during early trade, having opened at Sh65. NSE allowed the share change to exceed the intraday limit of 10 percent as it was trading following a material disclosure on the raising of its dividend for the year ended December 2025 to Sh3.42 per share from 0.80 per share the previous year, on the back of a profit rise propelled by motorcycle sales.
The Economic Survey 2026 shows that motorcycle sales in Kenya more than doubled in 2025 to 241,763 units, reflecting strong demand from public transport and courier sectors as prices of bikes eased on the back of a stable exchange rate and lower lending rates.
Newly registered motorcycles rose from 118,308 units, marking a second consecutive year of recovery after sales plunged to 70,691 in 2023.
The C&G management indicated the increase in dividend would have been higher following a jump in profits, but it was retaining a huge chunk of earnings to fund future growth.
The diversified retailer posted a profit after tax of Sh2.44 billion for the full year ended December, up from Sh526 million in a similar period a year ago, propelled by motorcycle sales.
“Given the performance during the financial period and the need for investment throughout the business, the directors do recommend a final dividend of Sh250 million, which is equal to Sh3.12 per share (2024: Sh0.80), in addition to the interim dividend of Sh24,062,000 (Sh0.30) paid during the year,” C&G said.
This means the company distributed only 11.2 percent of its net earnings, retaining 88.8 percent of the profit, with management stating the company needs to increase volumes.
C&G’s revenues grew 20.9 percent to Sh25.3 billion from Sh20.9 billion a year earlier, with the sale of boda bodas cited as a major contributor.
The dividend shall be paid to shareholders who will be on its register on June 24 and will be paid on or about June 30.
“In Kenya, specifically, the boda boda business resumed growth to a monthly average of 8,000 units from a low of 4,600 units per month in 2024. This led to a recovery in growth of our Kenya business after two years of decline,” said the company.
The company has five different business lines, including automotive and equipment distribution, property investment, financial services, poultry, and helmet manufacturing.
Its operating expenses rose 16.8 percent to Sh3 billion, signalling the increase in operations to drive revenues.
C&G’s share of profit from its associate Watu, which sells mobile phones on hire purchase, jumped to Sh1.69 billion from Sh219.7 million booked in 2024. Watu finances smartphone acquisition in Kenya, Uganda, Tanzania, the Democratic Republic of Congo, Nigeria, and Sierra Leone.
It disclosed that sales in Uganda and Tanzania now represent over 56 percent of its group turnover.
