It all depends on how far the original British folk music is diluted!
Where does it say that they are the British Folk Awards, or Awards For British Folk Music, or any such variant? The only reasonable extrapolation that can be made for Folk Awards given by the BBC is that they are awards for all folk music being made within the cachment area of the BBC. If that's their remit, they singularly fail by excluding most of the folk music that can be found in the UK outside the walls of so-called folk clubs.
Are these people i.e. "Juldeh Camara, Seckou Keita. The Krar Collective, Mor Karbasi" playing British folk music?
They are people who live in Britain playing mostly traditional folk music.
I would be interested to see how the BBC define or give guidance on eligible music to their mythical jury of 80/120/150 or whatever the number is. Would any of those people care to break cover and quote the rules, if there are any?