Blue-chip companies listed on the Nairobi Securities Exchange (NSE) are signaling higher dividend payouts, reinforcing the momentum behind the market rally seen in 2025.
Companies such as Safaricom, BAT Kenya, Equity Group, Co-operative Bank of Kenya, and NCBA Group have either raised interim dividends or posted strong earnings growth. These trends position them for larger full-year payouts to shareholders.
Earnings Growth Drives Dividend Optimism
BAT Kenya set the tone early by doubling its interim dividend to Sh10 per share for the half year to June 2025. This followed a 39.7 percent surge in net profit to Sh2.98 billion.
In the previous year, BAT paid an interim dividend of Sh5 per share, followed by a final payout of Sh45. The company resumed sales of nicotine pouches in June 2025, a move expected to support revenue growth alongside its cigarette business.
Safaricom also posted strong results. The telco reported a 52.2 percent jump in net profit to Sh42.7 billion for the half year to September. Its dividend policy commits it to distributing at least 80 percent of net income.
Sustaining the current earnings trend could allow Safaricom to raise its dividend above the Sh1.20 per share it has paid in recent years.
Banks Lift Interim Dividends
Co-operative Bank of Kenya signalled a higher payout for the year ended December 2025 after declaring its first-ever interim dividend of Sh1 per share. Previously, the bank paid a single annual dividend of Sh1.50 per share.
If the final dividend remains at Sh1.50, total payouts would rise to Sh2.50 per share. This would represent a 66.7 percent increase in cash returns. The bank posted a 12.3 percent rise in net profit to Sh21.56 billion in the nine months to September.
Equity Group also remains on track for a record dividend. The lender grew net profit by 32.6 percent to Sh52.1 billion over the same period. The group has committed to a payout ratio of between 30 percent and 50 percent of net earnings.
For the year ended December 2024, Equity paid Sh4.25 per share, translating to a payout ratio of 34 percent.
More Lenders Signal Bigger Returns
I&M Group raised its interim dividend by 15.3 percent to Sh1.50 per share, up from Sh1.30 a year earlier. The bank grew its net profit by 28.7 percent to Sh11.8 billion in the nine months to September.
NCBA Group also increased its interim dividend to Sh2.50 per share from Sh2.25. Net profit for the period rose 8.5 percent to Sh16.4 billion. The bank paid a total dividend of Sh5.50 per share in 2024.
Stanbic Holdings more than doubled its interim dividend to Sh3.80 per share, despite a 9.3 percent decline in half-year profit to Sh6.5 billion. The lender said the payout reflected a distribution of excess capital aimed at improving return on equity.
Falling Rates Support Market Rally
Lower interest rates are expected to support higher lending volumes, strengthening earnings across the banking sector. Data from the Central Bank of Kenya shows the average commercial lending rate fell to 14.88 percent in November 2025, down from 17.15 percent earlier in the year.
Strong earnings and dividend expectations helped blue-chip stocks add hundreds of billions of shillings in shareholder value during 2025.
Safaricom’s share price rose 66.2 percent, adding Sh452 billion to its market capitalization, which closed the year at Sh1.135 trillion. Equity Group gained Sh69.6 billion to close at Sh251.8 billion.
Co-operative Bank added Sh45.5 billion in value to reach Sh140.5 billion. BAT Kenya’s shares rose 22 percent, lifting its market value by Sh8.3 billion. NCBA gained Sh58.9 billion, partly on speculation around a potential buyout by South Africa’s Standard Bank Group.
