The Kenyatta family is set to receive a dividend of KSh 489.4 million from their stakes in NCBA Group.
The dividend will be paid from the financial services group’s retained earnings of more than KSh44.2 billion accrued since its formation in 2019.
NCBA Group was formed in 2019 following the merger of NIC Bank Group and Commercial Bank of Africa Group (CBA).
Its formation was made possible by the Kenyatta, Ndegwa and Merali families.
The merger involved the transfer of 100 percent of the shares of CBA Group by its shareholders to NIC Group in exchange for 53 percent of the newly formed group making the deal a reverse merger.
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The transaction was approved by the Kenyan regulators and shareholders by April 2019.
As of May 2019, the merged group was still operating two sets of banks in Kenya, Uganda and Tanzania but was in the process of seeking regulatory approval to merge these business so that they can have one bank in each country and a group re-branding.
The institution’s full-year net profit doubled from KSh 4.6 billion in 2020 to KSh 10.2 billion at the end of 2021 making it Kenya’s third-largest bank.
Following the impressive financial performance, the board recommended paying KSh 2.25 per share for the year.
The total dividend will be KSh 3 per share when the interim dividend of KSh 0.75 is included.