The enormous payout was hugely supported by Safaricom and Bank dividends in the country.
The National Securities Exchange recorded a total dividend payout of Sh 102 Billion in 2019 from the Top 20 Best Performing registered companies yesterday. This move was confirmed following court orders to allow companies to hold online Annual General Meetings (AMGs) amid current conditions. The dividend payout is an 8.6% increase from last year's Sh 94.8 Billion .
This comes as a shock to many due to the fact that the NSE lost Sh 395.97 Billion since the start of the year due to the global amrkets turmoil leading to foreign investor withdrawal. "It was expected that companies would cut or cancel dividends in the race to preserve cash during the coronavirus crisis, which hit Kenya in mid-March when firms prepared to announce their financial reports and declare dividends", according to Victor Juma, a Senior Business Reporter at Nation Media Group.
Safaricom (SCOM) and majority of the banking sector players who own over 75% of the total money transacted at the bourse led the way in this month's total dividend payout. The leading telco company made a total payout of Sh 56 Billion at the rate of Sh 1.4 per share. This was after the company announced a total net earnings of Sh 74.7 Billion in the year 2019.
Kenya Commercial Bank (KCB) was next in line with a whooping Sh 11.2 Billion in dividends at the rate of Sh 2.5 per share. The largest bank in Kenya announced a total net earnings of Sh 22.6 Billion last year.
Equity Bank (EQTY) came in third place paying a total of Sh 9.4 Billion in dividends at the rate of Sh 2.5 per share. Its net earnings were recorded at Sh 22.6 Billion last year as the group's CEO James Mwangi did not hesitate to raise the bar on his fellow philanthropists by donating Sh 300 million to the coronavirus kitty.
NCBA Group (NCBA) and Nation Media Group (NMG) offered bonus shares and suspended cash distributions to shareholders, citing the need to preserve money.
Co-operative Bank (CO-OP) demonstrated its confidence by paying Sh 5.8 Billion in dividends at the rate of Sh 1 per share , which was paid on April 23.
East African Breweries Limited (EABL) is yet to release its full year results to the public.
Outlook
The Treasury's predictions indicate that the economy is likely to grow at 6.1%, barely up from last years 5.9%. Therefore, giving Kenyans the ability to make higher purchases for their households from stores and supermarkets improves economic growth as more money is injected into circulation, preventing it from dropping any further.
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