Time flies with great content! Renew in to keep enjoying all our premium content.
Prime
Stanbic Holdings pays Sh1.1bn franchise fee to SA parent firm
Chief Executive Officer of Stanbic Bank Kenya and South Sudan Joshua Oigara speaks during the lenders 2023 full year financial results briefing held on 6th March 2024 at Serena Hotel in Nairobi.
Stanbic Holdings paid Sh1.11 billion in franchise fees to its South Africa-based parent, Standard Bank Group, in the year ended December 2025, marking the latest such payout to the multinational.
The payment was down from Sh1.14 billion in the previous year, marking the second consecutive year of declining franchise fees to the Johannesburg-based lender. The payout peaked at Sh1.22 billion in 2023.
The franchise fee forms part of the annual payments Stanbic makes to its parent company, in addition to dividends.
Besides franchise fees, Stanbic paid Standard Bank Sh825 million for IT services and Sh210 million in other operating expenses. The lender disclosed the payments in its latest annual report.
The franchise fees brought the total amount paid to Standard Bank to Sh2.15 billion during the review period, down from Sh2.18 billion a year earlier.
Standard Bank operates in 21 African markets, including Uganda, where it also earns franchise fees for business support, use of its brand and access to its marketing capabilities.
The South African lender packages products and lending opportunities across multiple markets for its subsidiaries. It also pays part of the remuneration of Stanbic Holdings chief executive Joshua Oigara.
Stanbic Uganda Holdings Limited paid 42.21 billion Ugandan shillings (Sh1.47 billion) in franchise fees in 2025, up 10.2 percent from 38.28 billion Ugandan shillings (Sh1.33 billion) in the previous year.
The Sh2.15 billion paid to Standard Bank by Kenya's Stanbic Holdings came in addition to Sh6.61 billion the South African lender earned as dividends from its 74.92 percent stake in the Nairobi Securities Exchange-listed bank. Stanbic raised its dividend per share to Sh22.35 for the review period from Sh20.74 a year earlier.
Stanbic increased its dividend payout by 7.7 percent even as net profit for the year ended December 2025 remained flat at Sh13.72 billion.
The lender has a dividend payout policy of between 60 percent and 65 percent of net earnings.
The bank raised its dividend per share for the fourth consecutive year, with chief executive Joshua Oigara saying it has little incentive to hold excess capital given the backing of a strong parent that can provide funding for large cash outlays such as acquisitions.
