The family of late Kenyan multimillionaire businessman Chris Kirubi is set to receive Ksh120 million ($1 million) in dividends from their shareholding in Centum Investment, as the leading investment group increased its dividend pay-out by a whopping 77 percent over last year.
Centum Investment is Kenya’s largest listed investment firm.
The million-dollar dividend, which will be deposited into the family’s bank account at a later date, closely follows the €2.3 million ($2.31 million) that the family received from French manufacturing conglomerate Societe BIC as part of a multimillion-dollar deal that began in 2019.
Kirubi, a leading Kenyan businessman and serial investor who died last year at the age of 80, held significant equity stakes in top companies, including Centum, KCB Group, Haco Industries, and Bendor Estate Limited, all of which are part of his Ksh20-billion ($176 million) estate.
In comparison to the Ksh66.05 million ($608,250) that they received last year, his son Robert and daughter Mary-Ann Musangi, the primary beneficiaries of his 30.08-percent stake in Centum, are expected to receive a total dividend of Ksh120 million ($1 million) as part of the Ksh391-million dividend payout recommended to shareholders by the board.
“This payout represents a dividend per share of Ksh0.59 ($0.00497) up from Ksh0.33 ($0.00278) in the last financial year. The proposed dividend will be considered for approval by shareholders at the upcoming annual general meeting,” Centum CEO James Mworia said in a statement obtained by Billionaires.Africa.
The Ksh391-million payout ($3.3 million) is a 77-percent increase over the Ksh219 million ($1.84 million) that Centum paid to shareholders the previous year. It is consistent with the company’s recent policy of paying out 30 percent of annuity income to shareholders.
The decision to lavishly reward shareholders came on the back of a 142-percent increase in the group’s operating profit as a result of ongoing portfolio rebalancing in accordance with capital preservation and liquidity enhancement objectives.
Mworia added that “the improved performance came on the back of increased operational efficiencies, as well as reduced impairment provisions.”
