Co-operative Bank of Kenya has raised its dividend for the year ended December 2025 by 66.6 percent to Sh2.50 per share, amounting to a record Sh14.6 billion, on the back of double-digit earnings growth.
The lender has proposed a final dividend of Sh1.50 per share, having distributed its first-ever interim payout in December 2025. The Nairobi Securities Exchange-listed firm had previously maintained a dividend of Sh1.50 per share from 2022 to 2024.
The higher payout followed a 16.8 percent growth in net profit to Sh29.75 billion in the review period, up from Sh25.45 billion the year before.
The final dividend, amounting to Sh8.8 billion, is set for payment after the annual general meeting and will add to the Sh5.87 billion paid as an interim dividend.
The total distribution of Sh14.6 billion represents a payout ratio of 49.3 percent of the bank’s net income in the review period, up from 34.5 percent in the prior year amid a stronger capital base.
“This is the best-ever performance by the bank, which underscores the significant gains made under the 2025–2029 Good to Great Strategy and the 'Soaring Eagle' transformation agenda,” said Gideon Muriuki, managing director of Co-op Bank.
Payout boost
Top shareholder Co-op Holdings Co-operative Society Limited will receive Sh9.47 billion from its 64.56 percent stake. The entity is owned by saccos, including Harambee, Kenya Police, H&M, Afya and Kipsigis Teachers.
Co-op Bank’s net interest income grew by 22 percent to Sh62.85 billion from Sh51.52 billion a year earlier, supporting growth in operating income despite non-interest income easing to Sh29.03 billion from Sh29.13 billion.
The lender’s operating expenses rose by 11.3 percent to Sh51.98 billion, as provisions for loan losses increased by 9.2 percent to Sh9.46 billion and staff costs rose by 13.6 percent to Sh20.8 billion.
The rise in staff costs followed an expansion of the branch network by 12 to 222, while headcount increased by 372 to 6,235 employees from 5,863. The bank continues to expand in the local market, where it remains a major player in retail banking.
Subsidiary lift
Kingdom Bank, which is 90 percent owned by Co-op Bank, saw net profit rise by 59.6 percent to Sh876.45 million, driven by expansion in retail and business banking.
Co-op Consultancy & Bancassurance Intermediary Limited posted a pre-tax profit of Sh1.49 billion, up from Sh1.2 billion.
Co-operative Bank of South Sudan reported a pre-tax profit of Sh236.3 million compared with Sh11.1 million in the same period in 2024.
Co-op Trust Investment Services Limited contributed Sh936.2 million in pre-tax profit, up from Sh386.4 million in the previous year, as funds under management rose to Sh507.1 billion from Sh381 billion.
Kingdom Securities delivered a pre-tax profit of Sh129.7 million, compared with Sh74.2 million in the previous year, supported by increased capital markets activity.
The review period saw Co-op’s asset base grow by 11.3 percent to Sh827.35 billion, while customer deposits rose by 13.4 percent to Sh574.17 billion. The loan book closed the year at Sh421 billion, up from Sh373.7 billion the previous year.
