This after the lenders posted record profits for the year ended December 31, 2022.
NSE has in the past 12 months sunk by 14 per cent, with the NSE-20 which consists of the best performing companies among them top lenders shedding significantly.
Investors at the Nairobi bourse have lost close to Sh600 billion in paper wealth in the past two years, as foreign investors exit on a weak shilling that has tumbled 13 per cent against the greenback in the past 11 months.
Yesterday, the Central Bank of Kenya quoted it at 129.76 units against the dollar. It is selling at Sh145 in banks in forex bureaus.
This week, four top banks listed at the NSE reported a combined net profit of close to Sh80 billion, with KCB and Co-operative Bank Group leading the pack with Sh41 billion and Sh22 billion after-tax profits, respectively.
It comes at a time some major global banks are going through financial problems.
Standard Chartered Bank shareholders will receive the highest pay at Sh22 per share, following a 34 per cent increase in net profits to Sh12.1 billion.
Absa Bank Kenya reported a profit after tax of Sh14.6 billion with the bank declaring a total dividend of Sh1.35 per share, a 23 per cent increase from last year, bringing the total dividend payout to Sh7.3 billion.
KCB board has proposed a final dividend payout of Sh1 per share bringing the group's 2022 full year paout to Sh2. In total, it will pay out Sh6.4 billion in dividends.
Co-op Bank which reported net earnings of Sh22 billion for 2022 has increased its dividend by 50 per cent. The bank will be paying the highest dividends ever, of Sh8.8 billion.
Stanbic Holdings posted a 26 per cent growth in net earnings from Sh7.21 billion in 2021 to Sh9.06 billion. Its shareholders will, subject to approval at the Annual General Meeting, enjoy Sh4.98 billion.
Kenyan banks continue to ride on the digital revolution and customer-centric products to expand their asset bases at the time top global banks are tumbling.
European stock markets fell sharply on Thursday, with banking stocks deep in negative territory amid the global Silicon Valley Bank collapse and a run at Credit Suisse.
The top bank dropped to the bottom of the blue-chip index after its biggest lender, Saudi National Bank, said it would not be able to offer it more financial help.
Its shares closed down 24 per cent after falling as much as 30 per cent earlier in the session.
In the US, the top four banks' value continues to drop with Citi Bank shedding 5.4 per cent, JP Morgan 4.9 per cent, Wells Fargo 3.3 per cent, First Republic Bank 21 per cent and Bank of America 0.94 per cent.
Banking analyst Shadrack Kemoli told the Star that the sector is extremely fragile and that a little sneeze sends a pound of anxiety.
"The banking sector operates on credibility. What is happening in the US after the recent collapse of Silicon Valley Bank has activated trust issues globally," he said.
Financial risk analyst Mihr Thakar said bank failures incite capital flight and the effects of a normalisation of US Fed rates from a recessionary environment would be diluted by the reality.
