The family of Kenya’s first president Mzee Jomo Kenyatta is smiling all the way to the bank following record profits by the NCBA Bank Group in which they hold a stake.
The Kenyattas are set to pocket Sh. 924.26 million for their combined 13.2 per cent stake in NCBA Bank Group. This will follow NCBA’s decision to pay a dividend of Sh. 4.25 per share.
Net profit for the financial year ended December 2022 grew by 35 per cent to Sh. 13.78 billion. The Sh. 4.25 pSher share dividend pay is derived from a total of Sh. 7 billion dividend payout.
This is an equivalent of 50.8 per cent of the net profit, marking increased distribution from the previous year when the Sh. 4.94 billion was 48.3 per cent of the profits.
Local companies, with a stake of 76.97 per cent in the lender, will have received a total payout of Sh. 5.39 billion while local individual shareholders will receive Sh. 1.58 billion on their 22.63 per cent stake.
This dividend payout is an increase from the Sh. 3 per share dividend that the bank paid out the previous year, during which the Kenyattas received Sh. 652.5 million.
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The mega dividend payout comes hot on the heels of a huge paper wealth gain from a bullish NCBA stock rally in 2022. A spot check shows that in the twelve months of 2022, the Kenyatta family gained Sh. 3.12 billion from their ownership of a stake in the NCBA Bank at the Nairobi Securities Exchange.
This followed market gains that were realized by the NCBA stock, which emerged as the biggest gainer within the year amongst the banking stocks.
The NCBA stock gained by 57.94 percent in the year. This saw the Kenyatta family which now controls a stake of 13.2 percent gain 3.12 billion shillings to end the year at a value of Sh. 8.66 billion from the value of Sh. 5.5 billion as at January 2022.