KCB Group issues Sh13bn ($101m) interim dividend after NBK sale, posting 8% profit growth in H1 2025 despite market headwinds.
KCB Group Declares Record Interim Dividend After NBK Sale
Nairobi, Kenya — Shareholders of KCB Group are set to benefit from a landmark payout following the bank’s completion of the sale of National Bank of Kenya (NBK) to Access Bank Plc earlier this year.
In a historic move, the board has recommended its first-ever special dividend of Sh2.00 ($0.016) per share, alongside a basic interim dividend of Sh2.00 ($0.016) per share. The combined distribution amounts to Sh13 billion ($101 million) — the largest interim payout in KCB’s history.
Strategic Sale Boosts Shareholder Returns
The NBK sale, finalised in May 2025 after being initiated in March 2024, has significantly bolstered shareholder value.
KCB reported 8% year-on-year net profit growth, climbing from Sh29.9 billion ($232 million) to Sh32.3 billion ($250 million), driven by higher earnings across all business segments.
Group CEO Paul Russo highlighted the customer-first strategy during Wednesday’s investor briefing:
“We have placed our customers at the fore, to ensure we meet their needs in a timely manner.”
Strong Regional and Subsidiary Performance
KCB’s operations outside KCB Bank Kenya contributed 33.4% of pre-tax profit and 31.4% of total assets.
Non-banking entities — KCB Investment Bank, KCB Asset Management, and KCB Bancassurance Intermediary Limited — increased their gross profit contribution to 2.1% from 1.8% a year earlier.
Solid Balance Sheet Despite Market Headwinds
- Total assets: Sh1.97 trillion ($15.3 billion), stable year-on-year
- Loan portfolio: Sh1.18 trillion ($9.2 billion), up 2.8%
- Customer deposits: Sh1.48 trillion ($11.5 billion), supported by strong mobilisation despite the NBK sale and Uganda’s shift to its own Government-to-Government oil import system
Revenue Growth Driven by Lending
Total revenue rose 4.3%, underpinned by net interest income growth from Sh61.3 billion ($476 million) to Sh69.1 billion ($537 million), supported by improved lending yields and higher loan volumes.
The cost of funds held steady and is expected to decline in 2025 as interest rates ease across most of KCB’s operating markets.
Digital Banking Leads the Way
KCB’s digital channels handled 99% of all transactions, reinforcing their central role in customer engagement. This helped sustain non-funded income at Sh29.5 billion ($229 million) despite a hit from reduced foreign exchange earnings.
Bottom line:
KCB’s record dividend underscores its strong capital position and earnings resilience. The NBK divestment has unlocked cash for investors while enabling the Group to focus on growth opportunities across East Africa.