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Kenyatta family pockets record Sh1 billion pay day

The family's annual earnings from the investment have reached a record high

Former President Uhuru Kenyatta at N'Djili International Airport in the Democratic Republic of Congo (DRC) on January 19, 2024

The family of former President Uhuru Kenyatta is set to receive a staggering Sh1.03 billion.

This windfall stems from dividends accrued through their investments in NCBA Group following the bank's successful performance in the last financial year.

NCBA Group is disbursing a total of Sh7.8 billion in dividends following a year of solid performance.

The group cited enhanced banking performance and informed financial strategies as the core reasons behind their profitable year in which they posted a profit after tax of Sh21.5 billion in the Full Year 2023 results.

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This is a 56 per cent increase compared to Sh13.8 billion reported during a similar period in 2022.

According to the bank, shareholders will get a dividend payment of Sh4.75 per share, which is an increase of 11.8 per cent.

The Kenyatta family holds a 13.2 per cent stake through Enke Investments. This translates to Sh1.03 billion in dividends.

In FY 2022, the family received Sh924 million from a dividend payout of Sh2.25 per share.

The previous year (FY2021) they got Sh625 million from a dividend payout of Sh3 per share.

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In FY2020, the Kenyattas received Sh326 million for Sh1.5 per share.

Kenyatta Family Dividend Payouts
Year Dividend per share Total dividend received
FY2020 Sh1.5 Sh326 million
FY2021 Sh3 Sh625 million
FY 2022 Sh2.25 Sh924 million
FY 2023 Sh4.75 Sh1.03 billion

The Kenyatta family is the second-largest shareholder after the family of former Central Bank Governor Philip Ndegwa, which owns a 14.94 per cent stake through First Chartered Securities.

The Ndegwa family is set to pocket Sh1.17 billion in this year’s dividend payout, an increase from last year’s Sh876 million.

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In FY2021, Philip Ndegwa's family pocketed Sh580.8 million from their 11.7 per cent shareholding in the bank. In FY2020, the Ndegwas earned Sh290 million from their shares.

The Ndegwas now hold a stake of 14.44 per cent in the NCBA Group, with the Kenyattas following with 13.2 per cent.

Ndegwa Family Dividend Payouts
Year Dividend per share price Total dividends received
FY2020 Sh1.5 Sh290 million
FY2021 Sh3 Sh580 million
FY2022 Sh2.25 Sh876 million
FY2023 Sh4.75 Sh1.17 billion

The rise in earnings for both families shows that the bank's performance has been on a consistent upward trajectory, building confidence in its shareholders.

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The banking sector, according to analysts, remains a strong pillar of the Kenyan economy, consistently delivering substantial dividends to its stakeholders and contributing significantly to economic stability.

Kenyan banks had a strong financial performance in the last fiscal year.

Several major banks reported significant profits and increased dividend payouts to shareholders.

Co-op Bank reported a 5 per cent increase in net earnings to Sh23.2 billion, allowing it to recommend a dividend of Sh1.50 per share or an aggregate of Sh8.8 billion.

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This was a relief to investors as another major bank, KCB, had announced it would not be paying a dividend this year, the first time in 21 years.

Absa Bank Kenya also had a stellar year, with its net profit rising 12.2 per cent to Sh16.3 billion.

The bank declared a record dividend of Sh8.4 billion, representing a 14.8 per cent increase from the previous year.

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Equity Bank, despite a 5 per cent drop in profit after tax to Sh43.7 billion, maintained its record dividend payout of Sh15.1 billion, equivalent to Sh4 per share.

The bank attributed the profit decline to its strategic decision to maintain loan interest rates for 32% of its consumer loans to salaried civil servants, teachers and private sector employees at 13 per cent to cushion consumers during tough economic times.

I&M Group also increased its dividend for the third straight year, proposing Sh2.55 per share amounting to Sh4.22 billion. This was up from Sh2.25 per share or Sh3.72 billion the previous year.

Overall, the strong financial performance and increased dividend payouts by these Kenyan banks demonstrate their resilience and ability to deliver shareholder value despite the challenging economic environment.

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