A trader monitors stocks at the Nairobi Securities Exchange. Listed regional banks are expected to pay shareholders dividends after recording huge profits for year ending December 31, 2019. FILE PHOTO | NATION • Last year, Kenya’s banking sector recorded several mergers and acquisitions and more are predicted in the next two years as capital raising options diminish for smaller struggling lenders.
• The bank’s profits have been on a decline from Ksh168 million ($1.68 million) in 2015 to a loss of Ksh71 million ($710,000) last year.
• Loss-making Mayfair Bank, linked to politician Peter Kenneth, is being sold to a leading Egyptian bank, the Commercial International Bank.
Shareholders of Nairobi Securities Exchange (NSE)-listed companies, some of which are cross-listed on neighbouring countries’ stockmarkets, are from this month expecting to receive dividends on earnings made last year, putting a smile on investors’ faces amid the Covid-19 pandemic gloom.
The payments were made possible after the Capital Markets Authority (CMA) allowed the deferral of annual general meetings (AGMs) during the current restriction on public gatherings, giving board members the powers to declare and release dividend cheques.
Shareholders of regional lender KCB, which is cross-listed in Uganda, Tanzania and Rwanda, are set to get a final dividend payment of Ksh2.50 ($0.02) per share on April 27.
Equity Bank, whose shares are also traded in Rwanda and Uganda, has said it will pay its Ksh2.50 ($0.02) dividend per share in July, which will also see other firms such as Uganda’s utility firm Umeme (Ush 41.3,$0.01 per share, Kakuzi (Ksh 14,$0.14 per share), Diamond Trust Bank (Ksh2.70, $0.02 per share) wire cash to their shareholders.
Rwanda’s Bank of Kigali (BK), which is cross-listed on the NSE, will also get their pay cheques after the lender said it had opted for a video and audio conference call on May 20, to declare a first and final dividend of Rwf14.4 ($0.015) for the year ended December 31, 2019, payable on or about July 1 2020.
The firms will, however, be required to adhere to their respective dividend policies and secure all other relevant internal approvals, including making available the audited financial statements to the CMA, the NSE and the general public.
According to the CMA, board decisions pertaining to dividend payments, appointment of directors and appointment and remuneration of auditors will be subjected to the shareholders’ ratification at a later date.
“Board decisions on these matters will need to be tabled at the AGMs, once convened, […]