The Kenyatta family is set to pocket over half a billion shillings worth of dividends from its stake at the NCBA Bank.
The first family will pocket up to Sh. 652.5 million. This will be from its stake of 13.2 per cent in the NCBA Bank. This follows the financial results from the bank which showed net year profit of Sh. 10.22 billion and dividends of Sh. 3 per share for the full year ended December 31, 2021.
The full year net profit was more than doubled the Sh. 4.57 billion net profit the bank had made in the year 2020. The Kenyattas will be joined by the family of former Central Bank of Kenya governor Philip Ndegwa.
The Ndegwa family, which owns 11.7 percent stake in the bank, will earn Sh. 580.8 million in dividends for the financial period under review.
The Kenyattas and the Ndegwas have been the largest beneficiaries of the merger between CBA and the NIC Bank. The two families have raked over Sh. 2 billion in dividends alone since the two banks merged in 2019.
The Kenyattas’ stake in NCBA is currently estimated to be worth Sh. 5.46 billion while the Ndegwas’ ownership at the bank is estimated to be worth Sh. 4.89 billion.
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The two families closest rival in earning big money from shares is Equity Bank’s chief executive officer Dr. James Mwangi.
Dr. Mwangi owns a 3.4 percent direct stake in Equity Bank, and will be taking home a dividend payout of Sh. 383.4 million.
His 188.6 million shares in Equity Bank currently have a market value of about Sh. 6.52 billion, marking one of the single-largest investments in a publicly-traded firm by an individual.
In the 2021 financial year ended December 31, 2021, Equity Bank officially became the largest bank in East and Central Africa after posting Sh. 40 billion net profit. The bank’s assets jumped to Sh. 1.3 trillion.