Stanbic Kenya has declared a KSh 18.90 per share final dividend for FY 2024, showing investor confidence despite a Q1 2025 profit dip and market headwinds.
A Bold Bet on Stability
NAIROBI, Kenya – May 16, 2025
In a tough economic climate marked by high interest rates and tight liquidity, Stanbic Holdings Plc has made a bold move—declaring a final dividend of KSh 18.90 per share for the year ended December 31, 2024. This makes it one of the highest dividend payouts by a Kenyan bank this season.
The dividend was announced even as the bank’s Q1 2025 net profit dropped 16.6% to KSh 3.33 billion, down from KSh 3.99 billion in the same quarter last year. Shareholders registered as of May 16 will receive their payouts in early June 2025.
“This is not just a reward; it’s a statement of resilience,” said Joshua Oigara, CEO of Stanbic Bank Kenya.
“We’re navigating headwinds prudently while still prioritizing long-term value creation.”
💸 Strong Dividend Amid Sector Slowdown
At a time when many banks—like Family Bank and NCBA—have scaled back dividends due to pressure on margins and rising non-performing loans (NPLs), Stanbic’s KSh 18.90 payout stands out.
Kenya’s banking sector continues to struggle with:
- Reduced appetite for private-sector credit
- Elevated interest rates
- Cautious household and business borrowing
“Paying this level of dividend when profits are under pressure shows they have a strong balance sheet and trust in their strategy,” said Mumbi Ndegwa, banking analyst at Faida Investment Bank.
📉 Q1 2025 Results: Short-Term Pain, Long-Term Strategy
Stanbic attributed the Q1 profit decline to:
- Slower loan book expansion
- Higher provisioning for credit risk
- Increased operational costs linked to digital transformation
Despite the dip, the bank remains focused on long-term growth. Its priorities include:
- Accelerating digitization
- Expanding cross-border services
- Supporting agribusiness, SMEs, and energy finance
Positive indicators are already emerging. In April 2025, Stanbic Kenya’s Purchasing Managers Index (PMI) rose to 52.0, its highest in over two years—signaling a rebound in sectors like agriculture and services.
💼 Stanbic’s Broader Role in Sovereign Finance
Beyond commercial banking, Stanbic is increasingly involved in Kenya’s sovereign finance strategy. In May 2025, it acted as joint lead manager—alongside Citibank—in Kenya’s $1.5 billion Eurobond issuance and $579 million debt buyback.
“This was more than arranging capital—it was about restoring confidence in Kenya’s debt profile,” said Oigara.
This follows its growing role in East Africa’s capital markets, positioning Stanbic as a regional investment banking powerhouse.
📊 Solid Fundamentals and Regional Growth
As of FY 2024:
- Total assets surpassed KSh 388 billion
- Customer deposits increased year-on-year
- Digital transactions now account for over 95% of all activity
Stanbic continues to invest heavily in technology, including:
- The Stanbic App
- Enhanced corporate internet banking
- AI-driven customer support
These tools are expected to reduce operating costs and improve efficiency across its operations in Kenya, Uganda, South Sudan, and Tanzania.
📅 What Shareholders Can Expect
The KSh 18.90 dividend translates to a yield of over 8% based on current share prices on the Nairobi Securities Exchange (NSE). It reflects not just financial strength—but also investor confidence in Stanbic’s leadership.
“Stanbic is positioning itself as a fortress in uncertain times,” said Ndegwa.
“And that, for investors, is worth more than numbers on a balance sheet.”
✅ Stanbic Holdings Dividend Track Record
| Year | Final Dividend (KSh) | Interim Dividend (KSh) | Total (KSh) |
|---|---|---|---|
| 2024 | 18.90 | 0.00 | 18.90 |
| 2023 | 12.60 | 0.00 | 12.60 |
| 2022 | 7.05 | 0.00 | 7.05 |
🔮 Strategic Outlook: What’s Next?
Looking ahead, Stanbic is expected to focus on:
- Green finance and climate-focused lending
- Trade and infrastructure funding across East Africa
- SME credit lines in partnership with IFC and DEG
- Expanding inclusive banking via digital channels
With a solid capital base, regional momentum, and trusted leadership, Stanbic Holdings is well-positioned to thrive—while continuing to reward shareholders even in turbulent times.
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