Dividends paid to listed Nairobi Securities Exchange multinational firms are set to fall by 21 percent this year as some blue-chips cut on their payout by a significant amount.
The payout will be Sh10.2 billion less when compared to last year Sh48.6 billion. However, this will be a boost to the cash flow mainly to the European-based multinationals who are suspending dividends to reserve cash as coronavirus pandemic continue to threaten the global economy.
BAT Kenya paid Sh33.5 per share in the year ending December, while the previous year it paid Sh35.
Bamburi paid its investors Sh5.1 per share for the year ending December 2018 and suspended the dividends for the subsequent period following the fall of the incoming net by 37.2 percent to Sh359 million on a higher tax charge.
“The absence of the investment deduction allowance benefit for Hima in 2019, plus the suspension of Rwanda operations, led to a higher tax charge in 2019 due to the amortization of the associated deferred tax asset, the disallowing for tax purpose of costs associated with the discontinuation of Rwanda operations, and the derecognition of a previously recognized deferred tax asset for Rwanda,” Bamburi said in a statement.