KCB shareholders set for record Sh13b dividend boom on half-year profit jump

Shareholders of Kenya’s largest bank by assets, KCB Group, will smile all the way to the bank after the lender announced a record interim dividend payout fuelled by an eight per cent surge in net profit to Sh32.3 billion for the first half of 2025. 

The strong performance, driven by growth in earnings, has prompted the board to recommend a Sh13 billion payout, which includes a special dividend related to the sale of the National Bank of Kenya (NBK). 

The board of directors has recommended an interim dividend of Sh2.00 per share and a special dividend of Sh2.00 per share.

This combined Sh4.00 per share payout is the largest interim payment and the first special dividend in the bank's history. 

The Kenyan government stands as the biggest beneficiary of KCB Group's proposed Sh13 billion dividend payout for the half-year period. 

Holding stakes both directly through the National Treasury and indirectly via the National Social Security Fund (NSSF), the government's combined share makes it the biggest winner of the dividend boom. 

Group Chief Executive Paul Russo attributed the results to customer-focused initiatives and resilience across its seven East African markets, despite economic headwinds in key regions like Kenya.

Subsidiaries outside Kenya contributed 33.4 per cent of the Group's pre-tax profit. 

"The business across markets remains resilient despite the tough operating environment in key markets like Kenya," said KCB Group Chief Executive Officer Paul Russo.

"Despite this, we have placed our customers at the fore, to ensure we meet their needs in a timely manner." 

The financial results show that profit after tax grew from Sh29.9 billion in the same period last year to Sh32.3 billion, with all business franchises contributing to the higher earnings.  

The bank's subsidiaries outside KCB Bank Kenya demonstrated stronger performance, with their profit before tax now accounting for 33.4 per cent of the group's total earnings. 

The group's total assets remained stable at Sh1.97 trillion, even after the sale of NBK in the second quarter. 

The record dividend is expected to be welcomed by shareholders, as it reflects the bank's ability to navigate a challenging economic landscape and deliver significant value.  

The special dividend, in particular, rewards shareholders directly from the strategic sale of NBK, further highlighting the group's focus on unlocking value for its investors. 

While KCB Group’s asset quality remains a focus, with non-performing loans (NPLs) easing slightly to 18.7 per cent from 19.2 per cent at the end of 2024, the Group increased provisions for expected credit losses prudently. 

KCB also highlighted its digital transformation, with 99 per cent of transactions conducted outside branches. It recently launched a new unified mobile banking app in Kenya to further enhance customer access.

KCB Group posted an after-tax profit of Sh16.53 billion in the first quarter of the year ending March, riding on riding on higher income.

The lender had recorded Sh16.48 billion during a similar period last year.

The 0.3 per cent rise in net earnings came as the Group's total revenues grew two per cent to Sh49.4 billion in the first three months of 2025.

This came as the lender’s balance sheet closed the period at Sh2.03 trillion, up from Sh1.99 trillion.

Russo, speaking at the time, said the first quarter performance reflected a “strong push by teams across the business” and had matched the bank’s prior 2024 results.

Profit before tax contributions from KCB’s regional subsidiaries outside Kenya improved to 32 per cent, underscoring the group’s strategic focus on deepening its regional presence.

“Our robust balance sheet means that we are well-positioned to support our customers to navigate the general emerging challenges across the region,” he said.

“It is notable that we were able to match 2024 quarter one performance, which was impressive by all standards.”