Lender KCB Holds AGM Online, Approve KES 11B Dividend Payout

KCB Joshua Oigara

Lender KCB has announced a KES 11.1 billion total dividend payout to shareholders for the 2019 FY. The announcement was made today, and it implies sustained return to shareholders amidst a tough business environment.

According to the bank, shareholders have approved a final KES 2.50 dividend per ordinary share are directed by its Board at 2020’s AGM.

Due to movement cessation and ban of public gatherings brought forth by Coronavirus, KCB held an online AGM. Shareholders were able to register, access information about the 2019 Integrated Report and Audited Consolidated Financial Statement. The online meet was also marked by activities such as voting and questions for additional clarification.

The payout brings to KES 3.50 the total dividend for the year. The development is also accounting for an interim dividend of KES 1.00 per share paid out in November 2019.

“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 as 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,” said KCB Group Chairman Andrew Wambari Kairu.

In 2019, the bank registered a 5 percent rise in profit after tax to KES 25.2 billion.

In March 2020, KCB reported KES 6.3 billion in profit after tax (Q1 2020), which represented a 8 percent jump from KES 5.8 billion it reported in Q1 2019.

“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,” said CEO and MD Joshua Oigara.