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
Mediterrania Capital bought Australian Amcor's Moroccan packaging unit Enko Capital took ov...
Standard Chartered arranges $2.33 billion for Tanzania railway project Funding support...
Central bank to release $1 billion in cash to curb black market demand Move aims to ease inf...
From WHO-led efforts to strengthen pandemic preparedness to measles vaccination drives in Uganda, al...
Jetour to produce T1, T2 SUVs in South Africa from 2027 Chery to acquire Rosslyn plant, cre...
Australian junior secures about $2.3 million to fund exploration at Kameelburg Drilling and feasibility work to move forward on large rare earth...
$400 million invested in telecom infrastructure, including fiber across most districts 60% of the population still does not use telecom...
Milk production rises to 5.5 million tons, up 3.5% year over year Output grows for a third straight year, setting a new record Processing volumes also...
BCEAO 2025 net profit falls 14% to 588 billion CFA francs Dollar depreciation drives foreign exchange losses, reversing prior gains Gold...
In the far north of Cameroon, near the Nigerian border, lies Rhumsiki, a destination that feels almost untouched by time. Set within the Mandara...
UK museum to return 45 Botswana artifacts after 150 years Items collected in 1890s; restitution follows Botswana request Return tied to...