Kenya’s cooperative movement is the biggest winner in the Cooperative Bank Group dividend payout announced today. Out of the Sh8.8 billion pay out, Sh5.7 billion will go to the cooperative movement for their shareholding in banking group.
In a statement to newsrooms earlier today, the bank announced that it had disbursed a dividend payout of Sh8.8 billion to shareholders at the rate of Sh1.50 per share for the year 2023.
Essentially this mean the cooperative movement which is the majority shareholder in the banking group will receive the lion share of the disbursement equivalent to its 64.5 percent shareholding.
The cooperative movement shares in the banking group are held through Coop Holdings Cooperative Society. The largest beneficiaries of the dividend include key Savings and Credit Co-operatives (Saccos) that include Harambee, H&M, Kenya Police Sacco, Afya and Masaku Teachers
“The Co-op Bank Group aims to deliver a sustained increase in shareholder value by retaining a strategic focus on sustainable growth, resilience, and agility,” said Dr. Gideon Muriuki, Group Managing Director & CEO Co-operative Bank of Kenya upon the distribution of the dividend.
The banking group has maintained a consistent dividend payout on the back of sustained profitability over the years, with Year 2023 posting net earnings of Sh23.2 Billion. In addition, the Bank has built sufficient capital buffers through a prudent retention strategy that has boosted total shareholder funds to Sh127 Billion.
The dividend payout, which is equivalent to the one paid in year 2022, was approved by the regulators, and by shareholders at the bank’s Annual General Meeting held on Friday, 17th May 2024.
