Dividend buffet as Kenyan banks release 2025 results

Shareholders in Kenya’s banking sector are expecting a generous windfall as lenders begin announcing their full-year results for the period ended December 31, 2025.

Leading the pack is Stanbic Holdings Plc, which announced a record total dividend payout of Sh22.35 per share for the financial year ended December 2025.

The payout marks the fourth consecutive year of dividend growth by the lender and represents a 7.7 per cent increase compared to the previous year.

The distribution comprises an interim dividend of Sh3.80 per share and a proposed final dividend of Sh18.55 per share, rewarding investors despite the bank’s profit remaining largely unchanged.

Stanbic reported profit after tax of Sh13.72 billion, reflecting a steady performance in a year characterized by tight monetary conditions and cautious lending across the economy.

Analysts say the generous payout reflects the bank’s strong capital position and robust balance sheet, which has allowed it to maintain an investor-friendly dividend policy even in periods of modest earnings growth.

Meanwhile, shareholders of KCB Group Plc are also set to receive a substantial payout. The bank’s board has proposed a final dividend of Sh7 per share after posting net earnings of Sh68.4 billion for the year ended December 31, 2025, representing an 11 per cent growth compared to the previous year.

Investors are closely watching announcements from major lenders, including Equity Group Holdings, Co-operative Bank of Kenya, Diamond Trust Bank Group, NCBA Group and Standard Chartered Bank Kenya, which historically rank among the most consistent dividend payers at the Nairobi bourse.  

Beyond corporate earnings, Kenya’s macroeconomic indicators are also showing signs of resilience.

According to the Central Bank of Kenya, diaspora remittances reached Sh53.4 billion in February 2026, up from Sh49.4 billion in the same month last year, representing an eight per cent increase.

On a cumulative basis, remittance inflows over the 12 months to February 2026 rose to $5.05 billion, compared to $4.9 billion during a similar period in 2025, reflecting a 1.9 per cent growth.

Remittances remain one of Kenya’s most reliable sources of foreign exchange earnings, helping to stabilise the shilling and support the country’s balance of payments.

Economists say that inflows from the Kenyan diaspora now rival traditional exports such as tea and horticulture as pillars of the country’s external financing.

Investor appetite also remained strong in the domestic money market.

During the Treasury bill auction held on March 12, the government received bids totalling Sh43.7 billion against an advertised amount of Sh24 billion, translating to an oversubscription rate of 182.3 per cent.

While demand remained robust, interest rates moved in mixed directions across tenors.

Yields on the 91-day and 364-day Treasury bills declined, suggesting easing short-term financing costs, while the 182-day Treasury bill recorded a marginal increase in its interest rate.

Equity markets also recorded notable gains during the week ended March 12.

The NSE All Share Index (NASI), NSE 25 Share Index and NSE 20 Share Index rose by 1.63 per cent, 2.31 per cent, and 2.28 per cent, respectively.

Market capitalisation surged by 6.7 per cent, supported largely by the listing of shares of Kenya Pipeline Company following its highly anticipated initial public offering.

The government sold a 65 per cent stake in the company through an IPO priced at Sh9 per share, raising about Sh106.3 billion and valuing the firm at roughly Sh163.6 billion, making it one of the largest listings on the exchange in nearly two decades.

The offer attracted strong investor interest and was oversubscribed, reflecting renewed appetite for equities in Kenya’s capital markets.

Authorities plan to channel part of the proceeds into infrastructure development, including the expansion of Nairobi’s main airport through the National Infrastructure Fund.

Trading activity on the exchange also improved, with total shares traded rising by 10.19 per cent, while equity turnover jumped by 38.41 per cent during the week.

Market analysts say the confluence of strong dividend payouts, renewed listings and resilient macroeconomic indicators could help reinvigorate Kenya’s capital markets after several years of subdued activity.