Car & General Share Rally Leaves Investors Asking What Comes Next

Car & General (Kenya) Plc shares have climbed from KSh 26.40 to a record KSh 260 over the past year, an 884.8 percent advance. The move has added roughly KSh 1.5 billion to the market value of one significant holding.

SportPesa investor Paul Wanderi Ndungu holds an 8 percent stake, amounting to 6.42 million shares. That position has risen from about KSh 169.5 million to KSh 1.67 billion. The re-rating has coincided with a recovery in earnings, the return of dividends and improved operating momentum.

Profit after tax for the six months ended 30 June 2026 reached KSh 2.60 billion, up 308.8 percent from KSh 637 million a year earlier. Revenue advanced 30 percent to KSh 15.64 billion. Sales rose 40 percent in Kenya, 35 percent in Uganda and 22 percent in Tanzania.

Kenya motorcycle sales averaged 12,000 units a month in 2026 against 7,000 units a month in 2025. Management has called the increase a significant opportunity going forward.

Share of profit from associate Watu jumped 382.3 percent to KSh 2.04 billion, linked by management to growth in mobile-phone financing and results across several African markets. Watu has opened in Rwanda and South Africa.

Finance costs fell 21.7 percent to KSh 573.73 million. Profit before tax rose 281.5 percent to KSh 2.88 billion. Exchange-rate stability has afforded the group greater control over margins. Directors approved an interim dividend of KSh 1.00 per share, up from KSh 0.30.

Tanzania showed modest growth in two- and three-wheeler sales, with the outlook described as positive. The group’s Tanzania poultry operation has stabilised. Nairobi Mega on Uhuru Highway maintained stable footfall.

The company holds 22.5 acres in Shanzu after selling 1.5 acres and continues to pursue a partial reduction of the holding by the end of the financial year. Management noted that Mombasa-Malindi highway completion in 2027 will further enhance the property’s value.

Boda Plus, the helmet-manufacturing subsidiary, is now profitable and exporting to several neighbouring countries. Investments in electric two- and three-wheelers, LPG three-wheelers in Kenya and CNG three-wheelers in Tanzania have met a positive response, though management said charging and gas infrastructure needs to accelerate.

Near-term focus, according to management, is on leveraging business diversity to raise group profitability, growing market share across product lines and optimising the balance sheet. Management expects East African conditions on inflation, foreign exchange and liquidity to remain stable for the rest of the year.

Some observers have asked whether Watu’s profit growth can continue at the recent pace, whether current prices are driven mainly by fundamentals or also by sentiment, and whether the shares are approaching a peak. Those questions remain open as the company pursues the priorities it has set out.