KCB Group will distribute Sh12.85 billion to shareholders for the half-year ending June 2025, with half of the amount coming from a special dividend generated by the sale of National Bank of Kenya (NBK) to Nigeria’s Access Bank Plc in May.

The bank, which yesterday reported an 8.1 percent rise in net profit to Sh31.5 billion, will pay an interim dividend of Sh2 per share, alongside a special dividend of the same amount.

The combined payout of Sh4 per share almost triples last year’s interim dividend of Sh1.50 per share, which totaled Sh4.82 billion. It also surpasses the full-year 2024 dividend of Sh9.6 billion, where the final dividend was Sh1.50 per share, bringing the total to Sh3 per share.

KCB completed the sale of NBK at the end of May, receiving Sh14.2 billion from the transaction based on December 2024 figures. However, the bank noted that the final valuation could change since the sale concluded on May 30, 2025.

“The strong half-year performance and the projected trajectory of the business has allowed us a great bandwidth to propose a historic special and interim dividend to shareholders,” said KCB Group chairman Joseph Kinyua.

Part of the proceeds from the NBK sale will be reinvested in KCB’s Tanzania subsidiary as the bank aims to expand its market share. KCB operates in Rwanda, the DRC, Uganda, Tanzania, Burundi, and South Sudan.

The group posted a net profit of Sh31.5 billion for the six months to June, up from Sh29.1 billion in the same period last year. Its net interest income grew 12.7 percent to Sh69.1 billion, boosted by lending liquidity to other financial institutions and lower interest expenses.

Non-funded income, however, dropped 11.3 percent to Sh29.53 billion, largely due to a 48 percent decline in foreign exchange trading income, which fell to Sh5.2 billion.

The bank’s deposit base remained stable at Sh1.49 trillion, while interest paid to customers fell 3.3 percent to Sh24.7 billion, supported by declining interest rates.

Its loan book grew six percent to Sh1.09 trillion, earning interest income of Sh70.5 billion.

Non-performing loans rose slightly to Sh221 billion from Sh212 billion in June 2024, reflecting ongoing economic pressures across East Africa. KCB aims to reduce its ratio of non-performing loans to gross loans from 18.7 percent to between 14 and 16 percent.

The Kenyan unit, the main driver of the group’s results, recorded a net profit of Sh22.8 billion, up from Sh21.2 billion in the same period last year. Regional subsidiaries contributed 28 percent of net earnings, rising to Sh8.6 billion from Sh7.9 billion, maintaining their share despite growth.