KCB approves Sh11.1b dividend payout despite pandemic shocks

Tuesday, June 9th, 2020 00:00 |
KCB Group CEO and MD Joshua Oigara.

 Zachary Ochuodho @Pzachuodho

KCB Group PLC has announced a Sh11.1 billion total dividend payout to shareholders for the 2019 financial year – which is an increase from the Sh10.7 billion dividend paid out in 2018.

KCB Group chairman Andrew Kairu said shareholders approved a final Sh2.50 dividend per ordinary share as recommended by the board at this year’s Annual General Meeting.

This the highest amount ever paid by any banks in Kenya.

Feeding the poor

The payout brings to Sh3.5 the total dividend paid for the year, taking into account an interim dividend of Sh1 per share paid out last November, 2019.

The dividend will be paid on or before July 3, this year to shareholders on the register as at close of business on April 27, 2020.

Kairu told shareholders that despite the tough business environment last year, the business continued to generate returns.

KCB Group in 2019 posted a five per cent jump in profit after tax to Sh25.2 billion. Group chief executive and managing director Joshua Oigara said under the current tough macro-economic environment, business performance is likely to be subdued in the second half of the year.

“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,” he said.

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