KCB Announces KSh11.1 Billion Dividend Payout to Shareholders

KCB Group shareholders will receive their total dividends for the year 2019, despite some banks cutting back on the payments due to tough economic times brought by the Coronavirus pandemic.

In an announcement made on Thursday, June 4, 2020, KCB said it will give a total dividend payout of Sh11.1 billion to shareholders for the 2019 financial year.

The announcement came after the bank hosted an electronic AGM where shareholders were able to register, access information pertaining to the 2019 Integrated Report and Audited Consolidated Financial Statements, vote, ask questions and seek clarifications.

In the virtual meeting, the shareholders approved a final Sh2.50 dividend per ordinary share as recommended by the Board at this year’s Annual General Meeting.

The payout brings to Sh3.50 the total dividend for the year, taking into account an interim dividend of Sh1.00 per share paid out last November.

According to KCB Group Chairman, Andrew Wambari Kairu, the business continued to generate returns for its shareholders in spite of the tough business environment last year, adding that KCB is focused on continually supporting its stakeholders through the ongoing global COVID-19 pandemic.

Mr. Wambari said that “The crisis has seen the world confront its biggest health crisis this century. Our thoughts remain with the individuals and communities affected by the pandemic. We recognize that our actions during this pandemic are essential in keeping our economies across the region going. We have incorporated guidelines provided by the Government and adopted a raft of measures to cushion our staff, customers and stakeholders from the effects of the disease.”

Last year, KCB Group recorded a 5 percent jump in profit after tax to Sh25.2 billion.

This year in May, KCB reported Sh6.3 billion in profit after tax in the first quarter of 2020 ending March, an 8 percent jump from the Sh5.8 billion posted a similar period last year, driven by stronger non-funded income lines and interest income boost due to loan book growth.

“With the likely continuation of the crisis into the currently unforeseeable future, we anticipate and expect that the ability of some customers to service their loans will be impacted, there will be reduced demand for credit and this may impact our business performance for the remainder of the year,” the Group CEO and MD Joshua Oigara said.

KCB’s move to payout dividends has gone against the current trend where three top-tier banks, Standard Chartered, Equity and NCBA, recalled their dividends to shareholders due to the negative economic effect of coronavirus pandemic on the financial market.

The move to withhold dividends has received support from the International Monetary Fund (IMF) arguing the suspension of dividend payments by banks this year will help preserve much needed funding to ride the prevailing storm.