The family of President Uhuru Kenyatta has pocketed Sh625 million from the NCBA in dividends after the bank announced it would double its dividend per share to Sh3.
Kenyatta family, through their investment vehicle Enke Limited, own 13.2% of the bank.
The family of former Central Bank of Kenya (CBK) Governor Philip Ndegwa on the other hand pocketed Sh580.8 million from their 11.7% shareholding in the bank.
The bank on Wednesday said that in 2021, its profits shot to Sh10 billion from Sh4.57 million the previous year.
In 2019, the Kenyatta’s stake in NCBA was valued at Sh6.6 billion.
Many Kenyan banks have reported huge profits for the year 2021, despite many citizens complaining that the economy is not performing well.
During the Covid-19 period, a lot of restructuring happened to cushion banks from increase NPL provisions, which was improving loan book quality by re-engineering.
However, despite the huge profits, Kenya’s stock market has remained relatively low performing.
It is expected that after announcing payments of dividends, they would be more movement of shares at the Nairobi Stock Exchange.
Six tier one banks have announced payouts but their share prices have registered movements of between -1.3 per cent and 1.6 per cent.
“The Russia-Ukraine conflict, elevated global inflation and depreciating local currency have created a depressed investing environment. Subsequently, foreign investors have exited emerging markets leaving behind attractive dividends. Local investors seem to be disappointed with the dividends as they expected more,” economics analyst Solomon Kariuki told Business Daily.
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