Car & General (Kenya) Plc shares rose to KSh 55, their highest level since April 2022, after the motor-dealer declared its first-ever interim dividend and posted a 920% surge in half-year profit, sending the stock up 122% in six weeks.
- •The counter opened the year at KSh 22.75 and has since gained 122%, lifting its market capitalization to about KSh 4.05 billion based on 80.2 million outstanding shares.
- •The rally accelerated after the company’s August 12, 2025, half-year results showed a sharp rebound in earnings and renewed investor confidence.
- •Car & General’s profit after tax jumped to KSh 637 million in the six months ended June 2025, up from KSh 62 million a year earlier, supported by stronger performance in Kenya and its associate company, Watu Credit, which reported a 272% profit increase.
Revenue rose 9.6% to KSh 12.03 billion, while EBITDA more than doubled to KSh 1.54 billion.
The board declared an interim dividend of KSh 0.30 per share, payable on September 15, with book closure on September 2—marking the first such payout in at least 22 years, and possibly the first in the company’s history. The group had earlier issued a KSh 0.80 final dividend for the year ended December 2024.
Market Re-Rating and EV Exposure
The stock’s sharp re-rating reflects both improved fundamentals and optimism over Car & General’s exposure to the electric mobility transition through Watu Credit, which is financing electric two- and three-wheelers and expanding a network of more than 200 battery-swap stations across East Africa.
The company is also scaling compressed natural gas (CNG) vehicle projects in Tanzania, while expanding its helmet manufacturing and poultry operations to diversify revenue.
At the current price, the stock trades at about 3.5 times forward earnings and a price-to-book ratio of 0.7, making it one of the cheapest profitable counters on the Nairobi Securities Exchange.
The rally underscores a clear re-rating story—anchored on earnings momentum, dividend resumption, and exposure to East Africa’s fast-growing electric mobility market.
