Co-operative Bank of Kenya has unveiled a Ksh 8.8 billion dividend payout to shareholders after its net profit surged to Ksh 25.5 billion for the financial year ending December 31, 2024.
This payout, translating to Ksh 1.50 per share, reaffirms the lender’s steady dividend policy and underscores a strong performance in a year marked by solid revenue growth and strategic efficiency measures.
A significant portion of this dividend will benefit the Co-op Holdings Co-operative Society, the bank’s primary shareholder representing Kenya’s vast cooperative movement.
With its 64.5% ownership, the society is set to receive approximately Ksh 5.7 billion.
Among the key recipients of this windfall are several influential Savings and Credit Co-operative Societies (Saccos), such as Harambee, H&M, Kenya Police Sacco, Afya, and Masaku Teachers, all of which hold interests in the lender.
Group Managing Director and CEO Gideon Muriuki, while presenting the annual financial results in Nairobi, credited the 9.8% year-on-year increase in profitability, from Ksh 23.2 billion in 2023, to both growth in income streams and disciplined cost management.
Operating income climbed by 12.5% to Sh80.6 billion, propelled by a 13.9% rise in net interest income to Ksh 51.5 billion and a 10.1% gain in non-interest income, which reached Ksh 29.1 billion.
Subsidiaries such as Kingdom Bank Ltd and Co-op Bancassurance Intermediary Ltd played a pivotal role in these results, each recording over Ksh 1 billion in pre-tax earnings for the first time—a milestone that further solidified the group’s bottom line.
“The robust results reflect our commitment to sustainable and agile growth strategies,” Mr. Muriuki noted, highlighting the bank’s competitive Return on Equity (RoE), which stood at an impressive 19.7%.
He added that the board had recommended the Ksh 1.50 per share dividend, pending approvals from both shareholders and relevant regulatory bodies.
Looking ahead, Muriuki emphasized the bank’s ongoing efforts to enhance resilience and foster growth across key economic sectors, supported by its universal banking framework.
This model integrates digital innovation, a wide-reaching branch network, and the backing of a 15-million-strong cooperative membership—the largest such movement in Africa.
Defying an industry-wide trend of shrinking physical presence, Co-op Bank has instead expanded its branch network.
In 2024, it launched eight new outlets, raising the total number of branches to 211, five of which are in South Sudan.
This physical growth strategy, according to Muriuki, is rooted in the bank’s commitment to deepening financial inclusion and extending services to previously underserved communities.
With the branch expansion came job creation.
The bank hired 999 new employees, most of them young professionals, increasing its total staff count from 4,864 in 2022 to 5,863.
Among the newly opened branches are locations in Imaara Mall along Mombasa Road, Ugunja (Siaya), Luanda, Isibania, Maai Mahiu, Dagoretti Market, Marimanti, Ruiru Nord Mall, Naromoru, Eldoret Airport Road, Eldama Ravine, Westlands Square Executive Centre, Eastleigh BBS Mall, and Rumuruti. One additional outlet is expected to open before the year ends.
“Our strategy includes nurturing talent and scaling our team to meet both current operational demands and future growth opportunities,” said Muriuki.
The Co-operative Bank joins other top-tier financial institutions, namely KCB, Standard Chartered, and Stanbic Holdings, in reporting robust annual results and issuing generous dividends, a move seen as a vote of confidence in Kenya’s economic prospects.
Market analysts anticipate this trend to continue across the banking sector as other tier-one players unveil their results, signalling relief and renewed optimism for dividend-reliant investors amid prevailing economic headwinds.
