This archive report was first published on 4 June 2020.
As the COVID-19 pandemic continues to affect the global economy, KCB Group has announced a Sh11.1 billion total dividend payout to shareholders for the 2019 financial year.
On Thursday, KCB Group Chairman Andrew Wambari Kairu and Chief Executive Officer Joshua Oigara announced the dividend payout at the bank's 49th Annual General Meeting.
Shareholders have approved a final Sh2.50 dividend per ordinary share, bringing the total dividend for the year to Sh3.50, including an interim dividend of Sh1.00 per share paid out last November.
The payout comes as some banks, including Equity Bank and NCBA, have recalled their dividend payments due to economic uncertainties from the pandemic.
However, the International Monetary Fund (IMF) has backed the halting of dividend payments and share buybacks by banks in response to the pandemic, arguing that it will help preserve much-needed funding to ride out the storm.
Looking ahead, KCB Group is focused on supporting its stakeholders through the ongoing pandemic, with Chairman Andrew Wambari Kairu stating that the bank has incorporated guidelines provided by the Government and adopted measures to cushion its staff, customers, and stakeholders from the effects of the disease.
Despite the challenges posed by the pandemic, KCB Group posted a 5 per cent jump in profit after tax to Sh25.2 billion in 2019, and reported Sh6.3 billion in profit after tax in the first quarter of 2020, an 8 per cent jump from the previous year.
Group CEO and MD Joshua Oigara noted that the bank has prepared itself to operate under adverse circumstances, conserving capital, managing costs, and keeping a keen eye on the bank's liquidity.
SEE ALSO: KCB announces Sh11.1b dividend payout as peers withhold
