Agence Ecofin TikTok Agence Ecofin Youtube Agence WhatsApp

Finance

Kenya’s Equity Group cancels dividend distribution for FY2019

Wednesday, 27 May 2020 13:34
Kenya’s Equity Group cancels dividend distribution for FY2019

(Ecofin Agency) - The Board of Directors of Kenyan Equity Group Holdings says it has canceled the distribution of KSh9.5 billion (about $88.9 million) in dividends to shareholders for the financial year 2019.

The reason for this decision, the Board says, is the need to preserve liquidity in this pandemic context. Following this announcement, the Equity Group’s shares dropped by 3.04% on May 26 on the Nairobi Securities Exchange.

The Equity Group Board took a conservative approach that recognizes the emerging unquantified risk of the pandemic and opted to preserve capital in the face of the prevailing uncertainty. A strong capital and liquidity position gives us the strength and capacity to cushion our business and accommodate and walk with our customers during these challenging times,” said MD James Mwangi (pictured).

Initially, the Board had proposed to pay a dividend of KSh2.50 per share, following a post-tax profit up 14% to KSh22.6 billion for the year. The decision to halt the distribution of dividends has not been approved in the country. While the Central Bank and the Financial Markets Regulatory Authority agree on the postponement or holding of general meetings of the country's banks by videoconference, the two bodies have divergent views on the payment of dividends.

Standard Chartered Bank Kenya announced the postponement of its General Meeting during which the proposed dividend of KSh15 per share is expected to be approved by its board members.

Chamberline Moko





 
Mining


 
Telecom


 
Public Management


ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

AGENCE ECOFIN
Mediamania Sarl
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11

EDITORIAL TEAM
redaction@agenceecofin.com

ADVERTISING SALES
Benjamin FLAUX
bf@agenceecofin.com
Tél: +41 22 301 96 11
Mob: +41 78 699 13 72

 

Please publish modules in offcanvas position.