KCB Group shareholders okay Sh6.4 billion dividend payout

KCB Group shareholders have approved Kes3.2 billion in final dividend payout for the 2022 trading period, signaling a sustained return to investors.

The move brings to Kes6.4 billion the total dividend paid for the year, following a Kes3.2 billion interim dividend declared at the end of last year.

The shareholders approved a final dividend of Kes1.00 per share as recommended by the board at the 52nd Annual General Meeting held virtually on Thursday.

The dividend shall be paid on or about May 26, 2023, net of withholding tax to the shareholders on the members’ register at the close of business on April 6, 2023.

The shareholders also approved the appointment of two directors to the Group Board— Ms. Anuja Pandit, and former head of civil service Dr. Joseph Kinyua—to fill in casual vacancies.

Last year, the Group posted a 20 percent jump in profits net of all expenses, provisions, and taxes to Kes40.8 billion. Consequently, this raised the Group’s return on equity by 60 basis points to 23 percent, placing it among the highest at the Nairobi Securities Exchange.

Read also: KCB doubles loan loss provision to Sh4.1 billion as profit dips

Further, the contribution of PBT from Group businesses, which excludes KCB Bank Kenya, stood at 17 percent, up from 13.9 percent, driven by Rwanda unit BPR Bank, KCB Bank Tanzania, and KCB Bank Uganda.

In the Q1 2023 results released on Wednesday, the subsidiaries’ contribution increased further to 35 percent as investments in regional businesses continued to pay off, with the consolidation of Trust Merchant Bank (TMB); the Group’s anchor in the Democratic Republic of Congo.

In December, KCB Group successfully acquired TMB as part of its ongoing strategy to expand its regional presence, accelerate growth and build scale for regional relevance.

KCB acquired 85 percent of the shares of TMB with the existing shareholders continuing to hold the balance for a period of not less than two years, after which KCB may acquire their shares.

KCB Group Chairman Andrew Kairu said: “In the face of a challenging and volatile business landscape, the Group remained resilient, continuously delivering value to stakeholders, and solidifying the foundation of the enterprise.”

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