Tier-One Banks to Pay Record Sh111 Billion in Dividends as Payouts Jump 30%

Kenya’s top-tier lenders are set to reward shareholders with a combined dividend payout of Sh111.3 billion for the 2025 financial year, marking a 30.3 per cent increase from Sh85.4 billion paid out in 2024.

The nine tier-one banking groups’ distributions translate to a payout ratio of 40.4 per cent of total profits, reflecting strong earnings growth across the sector and renewed confidence in the country’s banking industry.

KCB Group will lead the pack with a dividend of Sh22.49 billion, representing a sharp 133.3 per cent increase from the previous year. The payout includes a special dividend linked to proceeds from the sale of its stake in National Bank of Kenya.

Closely following is Equity Group Holdings, which will distribute Sh21.7 billion to shareholders, up 35.3 per cent, underlining continued strong performance and diversification across its business lines.

Co-operative Bank of Kenya also posted a significant increase, with dividends rising 66.7 per cent to Sh14.67 billion, while NCBA Group will pay Sh11.7 billion, a 29.1 per cent jump.

Absa Bank Kenya is set to pay Sh11.13 billion, up 17.1 per cent, while Stanbic Holdings will distribute Sh8.83 billion, reflecting a 7.8 per cent increase.

Mid-tier payouts among the top banks include I&M Group at Sh6.53 billion, up 25 per cent, and Diamond Trust Bank Kenya (DTB) at Sh2.52 billion, a 28.6 per cent rise.

However, Standard Chartered Bank Kenya stood out as the only lender to cut its dividend, reducing payouts by 31.1 per cent to Sh11.71 billion.

The overall increase in dividends signals improved profitability and capital strength among Kenya’s largest banks, supported by higher interest income and expansion into non-funded income streams such as digital banking and trade finance.

The robust payouts are also likely to boost investor confidence in banking stocks at the Nairobi Securities Exchange, where financial stocks remain dominant.

With most lenders maintaining or increasing their payout ratios, the sector continues to position itself as a reliable source of returns for shareholders, even as it navigates a dynamic economic environment.

The strong dividend growth underscores the resilience of Kenya’s banking industry and its ability to generate value amid evolving market conditions.