Skip to content
Market News

National Treasury Acquires 13.7 Million Shares worth 468.4 Million Shillings in KCB Group

BY Soko Directory Team · April 7, 2017 08:04 am

The National Treasury acquired an additional 13.7 million shares in the KCB Group in the lenders dividend deal last year where part of the payout was in the form of the company’s own shares.

The new shares have a market value of 468.4 million Kenyan shillings which was raised by the Treasury interest in the country’s biggest Bank by assets from the previous 17.31 percent and cemented its position as the largest single shareholder.

The Treasury’s enlarged stake is disclosed in the lender’s latest annual report.

The government was among the few institutional investors that opted to receive half of the Sh6 billion total dividends — declared for the year ended December 2015 — in shares.

KCB offered a payout of Sh2 per share, with Sh1 per share in cash and Sh1 per share in stock at the conversion price of Sh38.

Investors had the option to reject the share allotment plan and apply for an all-cash dividend.

The Treasury and other shareholders took up a total of 40.8 million shares in what is technically known as a scrip dividend, a move that led to a 1.3 per cent dilution of those who snubbed the stock offer.

The National Social Security Fund (NSSF), the second-largest shareholder with a six per cent stake, was among investors who elected to receive their entire dividend in cash.

KCB saved Sh1.5 billion in the scrip dividend, a move that helped to boost its capital position.

The lender, however, raised its dividend payout for the year ended December 2016 to a record Sh3 per share or an aggregate of Sh9.1 billion, citing adequate cash reserves.

The Treasury’s participation in the scrip dividend signals its confidence about the lender’s future prospects.

The capping of interest rates starting September last year has dimmed the profitability outlook for banks that reported double digit earnings growth in previous years.

Related: KCB Group Posts a 10 Percent Rise in Profit Before Tax

Written by Amina Martha.

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

Trending Stories
Investment Your Investment Plan For 2025: Mansa X (19.53%) vs. Oak Fund (29.38%) – 2024 Performance, Which Should You Invest In? Steve Biko Wafula
Entrepreneur's Corner 15 Reasons Why You NEED NCBA Now: The Bank Fueling Ambition And Entrepreneurship In Kenya Steve Biko Wafula
Government and Policy HELB Opens Loans And Bursary Application For Students, How To Apply Getrude Mathayo
Headlines Jubilee Health Insurance Launches Its First Center of Excellence, Agency Office; Empowering Agents To Bridge Kenya’s Healthcare Gap Soko Directory Team
Government and Policy TSC Announces JSS Vacancies, Requirements And How To Apply Getrude Mathayo
Related Articles
Market News CBK’s 8.3-Year-Bond Oversubscribed, Ksh 59 Billion Worth Of Bids Received Soko Directory Team
Market News T-Bills Record First Undersubscription In Two Weeks As Kenyans Go For Shorter Tenors Soko Directory Team
Market News Kenya Airways Sustains Rising Streak, Ends The Day As Top Gainer Soko Directory Team
Market News Government Borrowing in FY24/25: A Closer Look at Progress And Market Dynamics Soko Directory Team
Market News Liquidity Conditions In The Money Market: A Stable Start To The Year Soko Directory Team
Explore Soko Directory
Banking Blogging Commodity Watch Did you know Entertainment Entrepreneur's Corner Feature Government and Policy Headlines Investment Lifestyle Market News Money Opinion Press Releases Stock Watch Technology
Soko Directory Archives