Nairobi — British American Tobacco's pre-tax profit for the year ended December 2007 rose by 17 per cent to Sh2 billion, up from the Sh1.7 billion recorded at the end of 2006.

The growth was due to 12 per cent expansion of local demand, improvement of its local distribution network, and more contract manufacturing.

The firm's board proposed a final dividend of Sh10.50 a share. This, together with two interim dividends already paid, adds up to a total dividend of Sh17 a share for the year.

The dividend will be paid on May 7. Sales of its global brands Dunhill and Pall Mall doubled, while the company's Sportsman and Safari brands, which are traditionally sources of growth locally, performed better as well.

Higher domestic volumes drove gross turnover upwards to Sh15.7 billion, from Sh12.8 billion, a 23 per cent growth. BAT Kenya manufactures cigarettes for 14 other countries thus earning markup for the extra production.