KCB investors walk away with fat wallets in historic Sh7 dividend

The payout, the highest in the bank’s history, underscores KCB’s aggressive profit momentum and renewed confidence in the regional lender’s balance sheet. Shareholders are expected to receive billions in cumulative payouts following a year in which the bank posted robust full-year earnings and sustained growth into the first quarter of 2026.

The lender has continued to ride on strong performance from its regional subsidiaries, higher digital transactions and growth in lending income, helping cement its position among East Africa’s most profitable banks. In the first quarter of 2026, KCB maintained earnings growth despite a tough operating environment marked by elevated borrowing costs and slower private sector credit uptake.

The record dividend comes amid a rally in banking stocks at the Nairobi Securities Exchange, where investors have recently rewarded lenders posting resilient earnings and stronger shareholder returns. 

Banking counters dominated market activity over the week following the release of first-quarter financial results.

Away from banking, a little-known electrical cables company has emerged at the centre of what analysts are calling a “generational takeover” after making a surprise bid for struggling East African Cables.

Cable Experts Limited (CEL), a relatively unknown private firm registered in Westlands, Nairobi, has signed a Share Purchase Agreement to acquire the entire 68.4 per cent controlling stake held by TransCentury PLC through its subsidiary Cable Holdings Kenya Limited.

The agreement, signed on May 19, is structured as a rescue acquisition aimed at reviving the once-dominant cable manufacturer, which has remained under administration following years of financial distress.

The transaction includes settlement of East African Cables’ secured bank debt, effectively resolving claims held by Equity Bank and paving the way for the manufacturer to return as a going concern under new ownership.

The deal is being overseen by court-appointed joint receivers Muniu Thoithi and George Weru of PricewaterhouseCoopers Kenya under provisions of the Insolvency Act, 2015.

CEL has also applied to the Capital Markets Authority for exemption from mandatory takeover rules that would ordinarily require it to extend an offer to minority shareholders after assuming control of the listed company.

The company argues that the transaction falls within a court-supervised insolvency framework and qualifies as a public-interest rescue deal intended to save East African Cables from collapse.

Founded in 1966 and listed on the NSE under the ticker CABL, East African Cables built its reputation as a leading manufacturer of power cables and conductors supplying utilities and contractors across the region. 

However, its troubles deepened after a Sh2.2 billion loan default triggered administration proceedings in June 2023.

If approved, the acquisition could reopen the path for East African Cables’ return to active trading at the NSE at a time when the bourse is seeking to attract new listings after years of market stagnation.

Even so, the broader equities market remained subdued during the week, with the NASI, NSE 25 and NSE 20 share indices declining by 0.43 per cent, 0.51 per cent and 1.33 per cent, respectively. 

Market capitalisation, total shares traded and equity turnover also fell.

In the fixed income market, investor appetite for government securities remained firm. 

The Treasury bill auction held on May 21 received bids worth Sh30 billion against an advertised Sh24 billion, translating to a subscription rate of 125.2 per cent despite mixed movements in interest rates.

Meanwhile, the reopened 15-year and 20-year Treasury bond auction attracted bids worth Sh47.2 billion against an advertised Sh50 billion, reflecting continued investor demand for longer-term government papers.