This archive report was first published on 23 June 2020.
On June 23, 2020, Absa Kenya announced that its parent firm, Absa Group, had waived Sh1.2 billion in dividends to boost the lender's capital position.
According to Absa Kenya, the multinational had received an interim dividend of Sh744.1 million on October 11, 2019, and was entitled to a final payout of Sh3.3 billion this week. However, it will now receive a smaller final dividend of Sh2.1 billion.
This means that Absa Group's total dividend dropped 29.3 percent to Sh2.8 billion compared to the earlier anticipated Sh4 billion.
Absa Group is the only investor waiving part of its dividend, with minority shareholders in the Kenyan unit receiving their payout in full.
‘The effect of the waiver is to further strengthen the capital position of Absa Kenya,’ Absa Kenya said in a statement.
The partial dividend waiver is part of Absa Group's efforts to help the Kenyan business shoulder costs running into billions of shillings incurred in separating from its former majority shareholder, London-based Barclays Plc.
