TotalEnergies Marketing Kenya PLC has delivered a sharp earnings jump in the year ended 31 December 2025, with profit after tax climbing 45.6% to KSh 2.17 billion from KSh 1.49 billion,
- •Gross profit rose 33.2% to KSh 11.98 billion even as net revenue fell 8.9% to KSh 104.02 billion, implying a gross margin of 11.5% against 7.9% in 2024.
- •A regulatory-driven improvement in fuel margins more than offset a revenue decline and a one-off tax charge that inflated the headline effective rate to 43.9%.
- •The company's directors have recommended a first and final dividend of KSh 3.45 per share, the highest payout since FY1999 and the fourteenth consecutive annual dividend following the FY2011 suspension.
The profit improvement was driven primarily by gross margin expansion. The company attributed the improvement to a review of retail margins by the EPRA, a tailwind that is regulatory in origin and therefore not guaranteed to recur at the same magnitude.
Finance costs collapsed 55.9% to KSh 1.69 billion from KSh 3.83 billion, the single largest P&L swing in absolute terms, as the Central Bank of Kenya's easing cycle drove down borrowing costs.
The company ended the year with both its TotalEnergies Treasury overdraft facility and KSh 12.27 billion in local bank lines fully unutilized, effectively operating debt-free.
Aviation channel revenue more than doubled to KSh 8.86 billion from KSh 3.96 billion, the standout commercial development of the year. The company also opened 15 new service stations during the year and has authorized a KSh 3.76 billion capital expenditure pipeline for 2026, signaling an aggressive expansion posture.
The headline tax charge of KSh 1.70 billion, which produced an effective rate of 43.9%, requires context. A one-off KSh 410 million prior year tax assessment accounts for the bulk of the distortion. Stripping this out, the normalized effective rate falls to approximately 33.5%, consistent with the 30% statutory rate plus non-deductible expenses. The 2024 effective rate of 27.9% was equally distorted in the opposite direction by a KSh 112 million deferred tax credit.
Government fuel subsidy and prudent cost receivables, flagged as a key audit matter by Ernst and Young, are included within the KSh 25.65 billion trade receivables book. The exact quantum is undisclosed and recovery timing depends on ongoing negotiations between oil marketing companies, EPRA, and the Ministry of Energy. Until resolved, this represents a latent liquidity exposure that the headline cash position of KSh 13.44 billion does not fully neutralize.
The proposed dividend of KSh 3.45 per share, payable on or about 31 July 2026 subject to shareholder approval at the AGM on 24 June 2026, equates to a total payout of KSh 2.17 billion, matching profit after tax exactly. The company is distributing every shilling earned while funding a KSh 3.76 billion capex pipeline from operating cash flow.
