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Kenya

Kenya earns Sh523m from KCB

NAIROBI, Kenya, Jun 4 – The Kenya Commercial Bank (KCB) Group has paid out a Sh523.6 million dividend to the Government for 2008 marking a 45 percent increase over the previous year.

While presenting the cheque to Finance Minister Uhuru Kenyatta on Thursday, KCB Group Chairman Peter Muthoka attributed the increase in dividend payout to progressive success of the bank following its expansion across the East African region.

“KCB continues to record profits as the ground for such achievements has already been laid down. In Kenya, we are investing in expanding our branch network by another 30 this year to capitalise on available opportunities in the market,” the Chairman said.

Speaking while receving the cheque Mr Kenyatta commended the bank and other finacial institutions expanding to the region.

“Indeed expansion of institutions such as yours is in keeping with our shared aspiration for economic intergration and seamless service delivery to the common market,” Mr Kenyatta said.

He highlighted the important role the finacial service sector needs to play to realise Vision 2030 and urged them to develop innovative products that meet the needs of an increasingly sophisticated customer.

To that effect the Finance Minister called on Central Bank of Kenya to keep pace with the growing innovations shown by financial institutions to ensure there is transperancy and good governance in the sector.

Last year the bank paid a dividend of Sh360 million to the government which has a 23.8 percent stake of the bank’s shares.

The Government shareholding in the bank was reduced last year after a successful rights issue which enabled the bank raise Sh5 billion in additional capital.

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Mr Muthoka said 2008 was the fourth consecutive year for the bank to pay dividends to its shareholders.

Total dividend payout for 2008 improved by 59 percent to Sh2.20 billion translating into a one shilling payment for every share held. 

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