6 Kenyan Banks Paying Dividends in 2021

Kenyan banks, like most businesses, were hit hard by the covid-19 pandemic. They had to make higher provisions for loan losses and reduced economic activity that greatly affected their profit margins.

Despite their reduced profits, six banks decided to issue dividends to their shareholders though at a less price than the previous year.

KCB Group Plc

KCB Group Plc reported a net profit of KShs 19.6 billion for the full year ending December 2020. This is after a 22% decline from the KShs 25.2 billion a year earlier

KCB will pay a final dividend of KShs. 1.00 per share to shareholders on record as of April 26, 2021.

Read the full report here

I&M Holdings

I&M Holdings reported a 21% drop in net profit for the year ended 31st December 2020. The bank’s profit after tax decreased to KSh8.4 billion in 2020 from KSh10.8 billion in 2019.

I&M Holdings will pay a final dividend of KShs. 2.25 per share. Additionally, it will offer a bonus issue of one bonus share for every ordinary share. This will be issued on May 20, 2021, to shareholders who will be on record as of April 20, 2021.

Read the full report here

Standard Chartered Bank Kenya

Standard Chartered Bank Kenya reported a 33.9% drop in net profit for the year ended 31st December 2020. The bank’s net profit decreased to KSh5.44 billion in 2020 from KSh8.24 billion in 2019.

Standard Chartered will pay a final dividend of KShs. 10.50 per share to shareholders on May 27, 2021. The dividend will be paid to shareholders on record as of April 27, 2021.

Read the full report here

Co-operative Bank

Co-op Bank reported a 25% drop in after-tax profit for the year ended 31st December 2020. The bank’s net profit decreased to KSh 10.8 billion in 2020 from KSh 14.3 billion in 2019.

Co-op Bank will pay a final dividend of KShs. 1.00 per share to shareholders on April 15, 2021. The dividend will be paid to shareholders on record as of March 31, 2021.

Read the full report here

NCBA Group

NCBA Group reported a 42% drop in after-tax profit for the year ended 31st December 2020. The bank’s net profit decreased to KSh4.6 billion.

NCBA Group will pay a final dividend of KShs. 1.50 per share to shareholders on record as of April 20, 2021.

Read the full report here

Stanbic Holdings Plc

Stanbic Holdings Plc reported an 18.7% drop in after-tax profit for the year ended 31st December 2020. The bank’s net profit decreased to KSh 5.2 billion from KSh 6.4 billion.

Stanbic will pay a final dividend of KShs. 3.80 per share to shareholders on record as of May 21, 2021.

Read the full report here

What this means for you

Dividend stocks can provide you with predictable income as well as long-term growth potential. If you plan on earning passive income from dividend payments, then you should add these 6 banks to your watchlist.