Co-op Bank boosts payout after profit growth- Kenyan news

Co-operative Bank Group (Co-op Bank), led by longtime chief executive Gideon Muriuki, has announced plans to distribute a dividend of Ksh14.68 billion ($113.21 million) to shareholders after posting stronger earnings in the 2025 fiscal year.

The Nairobi-based lender said the payout, which is subject to shareholder approval, represents a dividend of Ksh2.5 ($0.01) per share. Muriuki, who holds 117.5 million ordinary shares, will also benefit from the distribution. The announcement follows a solid performance across the group’s banking and non-banking units, reinforcing shareholders’ confidence.

Muriuki stands to pocket $2.3 million
Co-op Bank reported a 16.9% rise in profit after tax to Ksh29.75 billion ($229.57 million), up from Ksh25.46 billion ($196.46 million) a year earlier. The earnings lift reflects stronger income from lending, improved cost controls, and contributions from subsidiaries, including Kingdom Securities, Co-op Trust Investment Services, Co-operative Consultancy & Insurance Agency, Kingdom Bank, and Co-operative Bank of South Sudan.

Based on the proposed payout, Muriuki, who has overseen the lender’s expansion for more than two decades, is expected to earn $2.26 million from his stake. The payment places him among the top individual dividend earners on the Nairobi Securities Exchange, where Co-op Bank remains one of the most widely held financial stocks.

Management said the bank’s ongoing investment in branch expansion, digital channels and regional operations continues to support growth, even as lenders navigate higher funding costs and a mixed economic backdrop.

Co-op Bank raises dividend after posting record profit
The planned dividend comes as the lender posted another period of steady gains in its balance sheet. Shareholders’ funds rose 13.8% to Ksh165.5 billion ($1.28 billion), supported by retained earnings growth of Ksh15.1 billion ($116.5 million).

Total assets rose 11.3% to Ksh827.4 billion ($6.38 billion), underpinned by customer deposits of Ksh576.5 billion ($4.45 billion) and loans advancing 12.6% to Ksh421 billion ($3.25 billion). Co-op Bank also continued to widen its physical footprint. The bank expanded its branch network to 222, including 12 new openings, and strengthened digital channels with over 90% of transactions now processed via mobile, internet, and USSD platforms.

Executives say the expansion and digital growth have enhanced customer reach and supported MSMEs, which now account for 16.8% of the loan book. If approved at the AGM, the dividend will mark one of the group’s largest payouts, reflecting confidence in its ongoing “Soaring Eagle” transformation and financial performance.