KCB Group shareholders have approved Ksh 9.64 billion total dividends pay-out for the 2021 financial year, signifying a sustained return to shareholders amid a tough operating environment occasioned by the adverse impact of the pandemic.
At the 51st Annual General Meeting held earlier Friday, June 3rd 2022 via electronic means; the shareholders approved a final dividend of Ksh 2.00 per share as recommended by the Board. The dividend shall be paid on or before July 7, 2022, net of withholding tax to the shareholders who were on the register of members at the close of business on April 25, 2022.
KCB Group Chairman Andrew Wambari Kairu told shareholders that in spite of the challenging business environment last year, the business continued to generate returns for its shareholders.
“The Group made significant progress with our strategic priorities and delivered strong business and financial returns. This performance affirms the robustness of all other important aspects of our business, including customer excellence, employee commitment, sustainability, and digital solutions, just to mention a few,” Mr. Kairu said.
“Moving forward, we are determined to sustain this momentum.”
Targeting to maintain return on average equity above 20% as our operating environment continues to improve,” he added.
The Group has over the years grown a diverse shareholder base of 193,274 shareholders, 89% of whom are local individual and institutional investors while 11% are foreign investors. In 2021, the total shareholder return was 27% significantly above the average inflation rate.
Mr. Kairu also thanked the outgoing Group Chief Executive Officer & Managing Director Joshua Oigara for his contribution in steering the Group to greater profitability and expanded footprint over the nine and a half years he has been at the helm of KCB Group. The Board appointed Paul Russo as the new Group CEO, effective May 25, 2022.
Mr. Kairu said. “We have confidence that Paul will lead the organization to even greater heights, drawing from his extensive experience in corporate management and strategy,” he added.
Mr. Russo noted “I am excited about our future. We will deepen our focus on enhancing service delivery and customer experience and our resolve to drive more transformation in the society and running a business anchored on sustainable business practices.”
In the first quarter of 2022, the Group sustained the growth momentum to post a net profit of Ksh 9.9 billion for the period ending March. The 54.4% growth in profitability from Ksh 6.4 billion a year earlier was on the back of increased net interest income.