Kenyatta, Merali and Ndegwa families will receive nearly $8.9 million in dividends from NCBA Group

Omokolade Ajayi -

Kenya’s wealthy Kenyatta family, as well as the Merali and Ndegwa families, are on track to receive a total dividend of Ksh1.02 billion ($8.89 million) from their stakes in NCBA Group, one of Kenya’s leading financial services groups.

According to figures obtained from the audited reports published by NCBA Group, the dividend will be paid from the group’s retained earnings of more than Ksh44.2 billion ($385.3 million) accrued since its formation in 2019.

NCBA Group is a Nairobi-based financial services conglomerate that operates as a non-operating holding through its extensive network of subsidiaries in Tanzania, Rwanda, Uganda and Cote d’Ivoire.

NCBA Group was formed in 2019 through the merger of NIC Bank Group and Commercial Bank of Africa Group (CBA) under the leadership of the wealthy Kenyatta, Merali and Ndegwa families in a deal that conceived Kenya’s third-largest bank.

The group’s full-year net profit more than doubled from Ksh4.6 billion ($40.1 million) in 2020 to Ksh10.2 billion ($88.9 million) at the end of 2021, thanks to strong performance from its banking, unit trust, and investment banking operations.

As a result of the financial performance, the board recommended paying a final dividend of KSh2.25 ($0.0196) per share for the year, which, when combined with the interim dividend of Ksh0.75 ($0.0065) per share paid on Oct. 12, 2021, brings the total dividend to KSh3 ($0.0261) per share.

According to the board’s decision, the wealthy Kenyatta, Merali and Ndegwa families, who own 13.2 percent, 5.9 percent, and 8.4 percent of NCBA Group, respectively, will receive a total dividend of Ksh1.02 billion ($8.89 million).

The family of the late Jomo Kenyatta, Kenya’s prime minister from 1963 to 1964, will receive a dividend of Ksh489.4 million ($4.27 million) from their stake.

While the Ndegwa brothers (Andrew and James) and the late Nashaud Merali family will receive dividends of Ksh311.68 million ($2.72 million) and Ksh218.9 million ($1.91 million),

The three families join Equity Group CEO James Mwangi, who will receive $3.35 million in dividends from his stake in Equity Group Holdings.