Kenya Commercial Bank (KCB) Group has announced dividends for its shareholders following the release of its financial results for the year ended December 31, 2025.
The lender’s shareholders are set for a substantial payout after the KCB proposed a total dividend of Ksh7 per share for the financial year ended 2025, translating to about Ksh22.5 billion in returns to investors.
The payout includes a proposed final dividend of Ksh3 per share—comprising Ksh2 ordinary and a Ksh1 special dividend—bringing the total dividend for the year to Ksh7 per share after the bank earlier paid Ksh4 in interim and special dividends.
The lender reported earnings per share of Ksh20.79, representing a 12 percent year-on-year increase, with the dividend payout ratio at about 33.7 percent.
Based on the current share price of around Ksh78.25, the dividend yields approximately 8.9 percent.
Meanwhile, the proposed final dividends will be paid on or about May 22, 2026, to shareholders on the register at the close of business on April 2, 2026, subject to shareholder approval.
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The bank reported on Wednesday, March 11, an 11% rise in full-year 2025 pre-tax profit, driven by growth in interest income.
At the same time, the lender said pre-tax profit climbed to Ksh 90.9 billion ($703.83 million), up from Ksh 82 billion the previous year.
Its subsidiaries outside Kenya contributed 31% of the group’s pre-tax profit.
Additionally, Net interest income rose by 8% to 148.0 billion shillings, from 137.3 billion shillings in 2024, the company said.
KCB Group’s Non-Performing Loan (NPL) ratio declined to 16.9% in FY2025, down from 19.2% in FY2024, marking the lowest level since 2021 as recoveries, restructurings, and write-offs gained traction across the portfolio.
The gross NPL stock fell year-on-year by about Ksh 14 billion to Ksh 211.8 billion, supported by upgrades and recoveries of about Ksh 53 billion, partly offset by Ksh 39 billion in loan downgrades during the year.
Asset quality pressure remains concentrated in KCB Bank Kenya (19.9%) and TMB in the DRC (11.5%), while other subsidiaries reported lower ratios, including KCB South Sudan (6.8%), KCB Uganda (5.0%), BPR Rwanda (2.8%), KCB Tanzania (2.4%), and KCB Burundi (0.9%).
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Manufacturing remains the largest contributor to the NPL stock, reflecting lingering stress in the sector since the COVID period, followed by real estate, personal/household lending, and trade.
Most sectors recorded an improvement in NPL ratios during the year, with the main deterioration coming from tourism, restaurants, and hotels, largely linked to a few specific downgrades in Kenya and South Sudan.
However, loan impairments increased slightly to Ksh 32.4 billion compared with Ksh 30 billion a year earlier, Lawrence Kimathi, the group’s finance director, said.
At the same time, the group’s chairman, Dr Joseph Kinyua, stated that the performance remained resilient with improved profitability, a strong balance sheet & stable capital levels.
“Regional diversification continues to anchor growth, with subsidiaries contributing 30.7% of Group Profit before tax and 30.2% of total assets,” he said.
