Massive Sh1 Billion Payout for Kenyatta Family as Kenyan Banks Report Strong Financial Year
The family of former President Uhuru Kenyatta is poised to receive a remarkable Sh1.03 billion.
This substantial sum comes from dividends accumulated through their investments in NCBA Group due to the bank’s impressive performance in the last fiscal year.
NCBA Group is paying out a total of Sh7.8 billion in dividends after a successful year.
The group attributed their profitable year, in which they recorded a post-tax profit of Sh21.5 billion for the full year 2023, to improved banking performance and effective financial strategies.
This represents a 56% increase compared to the Sh13.8 billion reported for the same period in 2022.
Shareholders will receive a dividend of Sh4.75 per share, an increase of 11.8% according to the bank.
The Kenyatta family owns a 13.2% stake through Enke Investments, resulting in a dividend of Sh1.03 billion.
In FY 2022, the family received Sh924 million from a dividend payout of Sh2.25 per share.
FY 2021, they earned Sh625 million from a dividend payout of Sh3 per share.
In FY 2020, the Kenyattas received Sh326 million from a dividend payout of Sh1.5 per share.
The Ndegwa family is set to receive Sh1.17 billion.
The Kenyatta family is the second-largest shareholder after former Central Bank Governor Philip Ndegwa’s family, which owns 14.94% through First Chartered Securities.
The Ndegwa family will receive Sh1.17 billion in this year’s dividend, up from Sh876 million last year.
In FY 2021, the Ndegwa family received Sh580.8 million from their 11.7% stake in the bank. In FY 2020, they earned Sh290 million from their shares.
First Chartered Securities recently surpassed Enke Investments as the largest shareholder by acquiring additional shares.
The Ndegwa family now holds a 14.44% stake in the NCBA Group, while the Kenyattas own 13.2%.
The rise in earnings for both families reflects the bank’s consistent upward trajectory, boosting shareholder confidence.
How other banks performed in 2023
Analysts note that the banking sector remains a key pillar of the Kenyan economy, consistently yielding substantial dividends for stakeholders and supporting economic stability.
Kenyan banks performed well financially in the last fiscal year.
Several major banks reported significant profits and increased dividend payouts to shareholders.
Co-op Bank saw a 5% rise in net earnings to Sh23.2 billion, recommending a dividend of Sh1.50 per share, totaling Sh8.8 billion.
This reassured investors, as KCB announced it would not be paying a dividend this year, the first time in 21 years.
Absa Bank Kenya also had a strong year, with a 12.2% increase in net profit to Sh16.3 billion.
The bank announced a record dividend of Sh8.4 billion, a 14.8% increase from the previous year.
Despite a 5% drop in profit after tax to Sh43.7 billion, Equity Bank maintained its record dividend payout of Sh15.1 billion, or Sh4 per share.
The bank attributed the decline in profit to its decision to keep loan interest rates at 13% for 32% of its consumer loans to salaried civil servants, teachers, and private sector workers to ease economic hardship.
I&M Group also raised its dividend for the third consecutive year, proposing Sh2.55 per share, amounting to Sh4.22 billion. This was an increase from Sh2.25 per share or Sh3.72 billion the previous year.
Overall, the strong financial performance and rising dividend payouts by these Kenyan banks highlight their resilience and ability to provide shareholder value despite a challenging economic landscape.
Massive Sh1 Billion Payout for Kenyatta Family as Kenyan Banks Report Strong Financial Year