The 20-Share Index has ignored the tough economic pressure caused by the covid-19 pandemic and has decided to pay its shareholders dividend worth Sh 102.9 billion.
Their previous dividend paid by the firm was Sh 94.8 billion, which reflects an 8.6 percent growth compared to the currently planned dividend of Sh 102.9 billion.
Some companies such as NCBA Group and Nation Media Group suspended payment of dividends to their shareholders to preserve cash and instead offered bonus shares.
Safaricom, on the other hand, will more likely go through the pandemic pretty well due to the increased demand for their services. The company announced a dividend of Sh 1.40 per share, which totaled to Sh 56 billion.
“Whilst things will remain challenging in the short term, we believe we are placed to weather this storm,” said Safaricom.
Other firms like BAT, NSE, and Kenya Re are examples of firms that have slightly cut dividends. While the Co-operative bank already paid its dividend of Sh 1.00, a total of Sh 5.8 billion to its investors in April.
Payment of dividends will make shareholders have money for their expenses but will likely increase demand in an economy where intake has become loose.