Quickmart has clarified how it will determine shareholder dividend payouts following its initial public offering (IPO), with the retailer maintaining an 80% payout ratio as the minimum level while leaving the ceiling dependent on its financial performance.
In a TV interview, Quickmart Chief Financial Officer Simon Macharia said the company does not plan to cap its dividend payout at 80%, explaining that the figure represents a floor rather than a ceiling.
“As I said, this year we’re actually paying 95% based on our projections. We’re not going to tone down, but we need to manage expectations. So that’s why we put the minimum at 80% where results allow,” Macharia said.
Why Quickmart Is Not Capping Dividend Payouts at 80%
Macharia explained that the retailer’s dividend payments would continue to depend on its performance, meaning shareholders could receive payouts above the 80% threshold.
He also addressed a KSh1.1 billion shareholders’ advance, saying it was part of an interim dividend, bringing the cumulative amount to KSh1.3 billion.
Quickmart expects to pay a total dividend of KSh2 billion for the full year 2026, according to Macharia. This would leave approximately KSh700 million to be paid as a final dividend.
The retailer paid KSh1.6 billion in dividends for the full year 2025.
Macharia also addressed the company’s capital structure, saying Quickmart has access to a KSh2 billion credit facility that it has not activated because it currently does not need the funds.
Macharia further clarified that the 80% payout ratio was introduced to manage expectations rather than signal a deliberate reduction in shareholder returns. He said Quickmart projected a 95% payout for 2026 and would continue assessing its dividend policy based on financial performance.
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He explained that dividend decisions must be made annually by the board of directors based on actual results and approved by shareholders at an Annual General Meeting (AGM).
“It’s not cast in stone. So where performance allows, we will see what to do and adjust accordingly. So we are not toning down,” Macharia said.
Quickmart Details Final Dividend Payment and Rules Out Immediate Borrowing
On the KSh1.1 billion shareholders’ advance reflected in the information memorandum, Macharia confirmed the amount formed part of an interim dividend payment that eventually totalled KSh1.3 billion.
He said the retailer had projected a full-year 2026 dividend of KSh2 billion, leaving about KSh700 million to pay as a final dividend to existing shareholders and those who join the company after the IPO.
Quickmart paid KSh1.6 billion in dividends in 2025, Macharia said, adding that the company remained focused on generating value for shareholders.
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Macharia also addressed whether the retailer would take on debt to optimise its capital structure, acknowledging that borrowing can help reduce a company’s weighted average cost of capital.
However, he said the decision would depend on the company’s funding needs and the value generated through its working capital.
“That is for sure. But at the same time, it’s also based on the value that we generate from our working capital. We only get debt when we need it,” he said.
The CFO disclosed that Quickmart already had access to a credit facility worth close to KSh2 billion but had not activated it because the business did not need the funds.
He added that the retailer had other financing options and sufficient cash, so borrowing was unnecessary for now. Macharia said the company would only seek debt when a clear need arose.
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