Co-operative Bank of Kenya has announced that it will pay dividends to its shareholders which will amount to 5.86 Billion Shillings.
The Bank which is said to be the first one to make such an announcement this year added that the payments will be done by next week.
This year, Co-op bank said it will make the payments earlier where it will pay one shilling per share dividend to April,23,2020.
In the previous year, the payments were made in June, meaning this year’s pay-outs have been done much earlier even in the wake of Coronavirus pandemic that continues to bring uncertainty to the economy.
However, the Co-op bank has been forced to pay dividends without getting approval at the shareholders meeting following the banning of mass gatherings to tame the spread of the Coronavirus.
Co-op Bank said it made the decision in line with the advice it got from Capital Markets Authority CMA which allowed all firms in the country to pay dividends without necessarily holding a Shareholders’ meeting.
This also means that Co-op Bank has postponed the Annual General Meetings AGMs scheduled for this year until further notice.
“With the current Covid-19 challenges, the need to release the much-needed funds to the grassroots in the over 15-million-member co-operative movement and in line with CMA guidelines, the bank is progressing to make the dividend payment for ratification at the next AGM,” Co-op Bank said in a notice.
The announcement has given relief to Co-op bank shareholders at a time when other businesses are closing while others are laying off employees and even sending staff on mandatory but unpaid leaves.
Following the dividends payout, the lender’s top shareholder, Co-op Holdings Co-operative Society Limited which has a stake of 64.56 percent will part with 3.79 billion shillings.
READ: Co-op Bank Donates Ksh 100 Million To Covid-19 Emergency Fund
Co-op Bank’s Chief Executive Officer who has a two percent stake will pocket 117.7 million shillings.
Other shareholders will get their dividends in correspondence with their stakes at the Bank where all the dividends will be ratified in the next AGM.
Co-op Bank said its profits grew by 12.4 percent to 14.3 billion shillings, attributing it to growth in non-income interest.
To support Kenya in fighting the spread of Coronavirus, Co-op Bank donated 100 million to the Covid-19 Emergency Fund.
Co-op bank cares about you during this difficult time, stay home and stay safe. We Shall overcome.