Kenya’s BAT Kenya resumes Velo nicotine pouches after citing regulatory clarity

Key Takeaways

• BAT Kenya said it resumed Velo nicotine pouch sales after regulatory clarity
• The company reported 2025 revenue of KSh23.2 billion (about $178.64 million), citing illicit tobacco growth as a key factor
• Finance Director Philemon Kipkemoi said Velo contributed about KSh232 million (about $1.786 million) from July–December 2025
• BAT Kenya shifted to an import model after divesting its local plant and currently sources Velo from Pakistan
• Kipkemoi projected Velo could reach 15%–25% of BAT Kenya revenue in three to five year

2Firsts, March 3, 2026

According to Capital FM, BAT Kenya said it has resumed sales of its Velo oral nicotine pouches after receiving regulatory clarity, marking a renewed push into non-combustible products as cigarette sales decline.

The company said Velo’s return underscores its strategy to diversify revenue streams in a market facing increased competition from illicit tobacco products and falling cigarette consumption. 

BAT Kenya reported a 10% drop in turnover in 2025, with revenue closing at KSh23.2 billion (about $178.64 million), and attributed the decline largely to the growing presence of illegal tobacco products.

Finance Director Philemon Kipkemoi said Velo contributed about 1% of total turnover between July and December 2025, translating to roughly KSh232 million (about $1.786 million). He said the company’s re-entry in the second half of last year was driven by a more suitable regulatory environment that now accommodates oral nicotine products.

Following the divestment of its local manufacturing plant, BAT Kenya has shifted to an import model. The company currently sources Velo pouches from Pakistan, but said it may reconsider local production depending on the product’s performance.

At the group level, British American Tobacco said it had 34 million non-combustible product consumers by the end of 2025, representing 68% of its target of 50 million users by 2030. The group aims to generate 50% of its revenue from non-combustible products by 2035, up from the current 18%.

Kipkemoi projected that Velo could account for between 15% and 25% of total revenue within the next three to five years. The resumption of sales was described as part of BAT Kenya’s broader strategy to expand alternative nicotine products while complying with evolving regulations and responding to changing consumer preferences.

Image source: Capital FM.