Gawio la mabenki ya Kenya lavunja rekodi mpya, Bilioni 51.7

[MK254]

Hili soko linatisha balaa..... Na sasa tumeteka DRC
============================

Local listed banks nearly trebled their dividend payout for the 2021 financial year, rewarding shareholders who have seen a mixed performance in capital gains on their stock in the period.

The nine lenders, including Equity , KCB , and Co-op Bank , have proposed to pay their shareholders Sh51.7 billion for the period, up from Sh18.8 billion in 2020. The payout marks a new record, surpassing the previous peak of Sh31.7 billion seen in 2019.

Only loss-making HF Group is not paying a dividend for the year ended December 2021.

The enhanced payout has come after a 73 percent growth in cumulative gross profit to Sh194.8 billion for the banking sector in 2021, as it recovered from the Covid-19 led economic slowdown of 2020.

The lenders had either reduced or withheld dividend payments altogether in 2020 as their sought to build capital buffers during the pandemic, and also required approval from the Central Bank of Kenya before making any distribution to shareholders.

In terms of the absolute amount of dividends paid, Equity Group leads the listed lender segment at Sh11.32 billion, having posted the sector's largest-ever net earnings of Sh39.1 billion in 2021.

It is followed by KCB with a payout of Sh9.4 billion, from a net profit of Sh34.2 billion, and Standard Chartered Kenya at Sh7.1 billion, having made a net profit of 9.04 billion in the period.

In terms of the share of net earnings distributed to shareholders, StanChart leads the listed lenders at 79 percent, followed by Absa at 55 percent, Stanbic Kenya at 49 percent, and NCBA at 48 percent.

The dividends have helped cover for some lacklustre performances in share price gains in half of the listed lenders in the past 12 months.

Going by Tuesday's closing prices, only four out of the nine listed lenders have seen a double-digit price gain in percentage terms at the NSE in the period, with three recording a price decline.

The top gainer in the period has been Absa (30.8 percent), while HF Group's share has declined by 8.2 percent during the period.

This has however resulted in some lenders offering dividend yields (at the current price) that are rivalling or beating those offered by the risk-free, one-year Treasury bills (9.75 percent).

Stanchart had the best banking dividend yield of 13 percent at Tuesday's prices followed by NCBA at 11 percent, with Stanbic and Absa at nine percent each.

cmwaniki@ke.nationmedia.com

Listed banks pay record Sh51.7 billion dividend

The enhanced payout has come after a 73 percent growth in cumulative gross profit to Sh194.8 billion for the banking sector in 2021, as it recovered from the Covid-19 led economic slowdown of 2020.

www.businessdailyafrica.com

 

[nomasana]

I remember when Tanzania blocked it's citizens from participating in safaricom and other big Kenyan IPOs because BoT feared that there will be capital flight.
Tanzanians would be eating some of this money too if it wasn't for ujamaa mentality and fear.

you gotta spend money to make money

 

[MALCOM LUMUMBA]

I remember when Tanzania blocked it's citizens from participating in safaricom and other big Kenyan IPOs because BoT feared that there will be capital flight.
Tanzanians would be eating some of this money too if it wasn't for ujamaa mentality and fear.

you gotta spend money to make money

What does Ujamaa Mentality got to do with capital flight ???. Now to remind you in case you have forgotten: Protectionism is a grotesque feature of capitalism.

 

[Tony254]

What does Ujamaa Mentality got to do with capital flight ???. Now to remind you in case you have forgotten: Protectionism is a grotesque feature of capitalism.

Nyie huwa waoga kwenye mambo mengi.

 

[MALCOM LUMUMBA]

Nyie huwa waoga kwenye mambo mengi.

You're somehow right, we Tanzanians are kind of schizophrenic, but let us not confuse between protectionism and political schizophrenia. And unlike Tanzania, when it comes to protectionism Kenya is probably the worst in East Africa.

 

[pingli-nywee]

You're somehow right, we Tanzanians are kind of schizophrenic, but let us not confuse between protectionism and political schizophrenia. And unlike Tanzania, when it comes to protectionism Kenya is probably the worst in East Africa.

What is Kenya's position globally or continentally, as far as ease of doing business is concerned and what is Tanzania's position? Maybe we should begin at this point, before we start this endless blame game.

 

[MoseKing]

🐒🐒

 

[MALCOM LUMUMBA]

What is Kenya's position globally or continentally, as far as ease of doing business is concerned and what is Tanzania's position? Maybe we should begin at this point, before we start this endless blame game.

Brav, let's break this ice before jostling with real points. Ease of doing business (EDB) is an empirical study that restricts itself on operations of business vis-a-vis conducive regulations installed within a particular state. Things like fair taxes, business returns, investor protection, respect of contractual obligations and the extent of bureaucracy in opening a business. etc. Considering EDB Kenya is light years ahead of Tanzania, no doubt about it.

But when we speak about Protectionism we mainly restrict ourselves on International Trade and related policies a nation undertakes to protect local manufacturers. It mainly focuses on balance of imports to ensure stability of domestic industries through the use of tariffs and non-tariff barriers. Kenya has the most industries in East Africa henceforth it is the most protectionist state than Tanzania.

NB: Ease of Doing Business is not the same as Protectionism. I believe after laying this ground work we can debate now.

 

[Agrey998]

Crdb imeanza kutoa dividend ya 51 bilion mwaka 2007 and the rest of the years following wamekuwa wakitoa hadi juu ya hapo na hata nmb nao wamekuja juu sana kwaio hicho kimeanzia hapa

 

[pingli-nywee]

Brav, let's break this ice before jostling with real points. Ease of doing business (EDB) is an empirical study that restricts itself on operations of business vis-a-vis conducive regulations installed within a particular state. Things like fair taxes, business returns, investor protection, respect of contractual obligations and the extent of bureaucracy in opening a business. etc. Considering EDB Kenya is light years ahead of Tanzania, no doubt about it.

But when we speak about Protectionism we mainly restrict ourselves on International Trade and related policies a nation undertakes to protect local manufacturers. It mainly focuses on balance of imports to ensure stability of domestic industries through the use of tariffs and non-tariff barriers. Kenya has the most industries in East Africa henceforth it is the most protectionist state than Tanzania.

NB: Ease of Doing Business is not the same as Protectionism. I believe after laying this ground work we can debate now.

The groundwork you laid, I can confidently state, is already null and void at this point and does not relate to this discourse. I will explain further. You have already stated that Kenya is light years ahead of Tz when it comes to EDB, so I won't focus on that point.

Protectionism, in its true sense is established through institutionalized legal framework, open and and above board, advertised to all and sundry, potential investors included. Refer to Kenya-UG trade tiff that was caused by Kenya's parliament. After passing a law locking out eggs and other related products from the Pearl, to protect Kenyan chicken farmers. Protectionism, when unofficial(hence illegal, in law or morally) becomes purely ill-intended bureaucracy. Hence my prior point about the EDB, which from time immemorial, does not mix well with bureaucracy, its major hindrance.

Protectionism and bureaucracy are just two sides of the same coin, depending on the different view points, of the 'victim'(potential investors) and the 'perpetrator'(foreign authority/govt.). Hence the presence of such policies(protectionist) can even be determined, albeit falsely, through feelings instead of facts. Especially mistrust, driven by political factors not related to trade.

 

[MK254]

Crdb imeanza kutoa dividend ya 51 bilion mwaka 2007 and the rest of the years following wamekuwa wakitoa hadi juu ya hapo na hata nmb nao wamekuja juu sana kwaio hicho kimeanzia hapa

Tulia usome tena na uelewe nini kinasemwa humu, hiyo 51b ya CRDB ni pesa kwa sarafu ya Tshs, mimi naongea kuhusu 51b ya Kshs, chukua kikokotoo badilisha kuja kwa Tshs utaelewa.

 

[Tony254]

Brav, let's break this ice before jostling with real points. Ease of doing business (EDB) is an empirical study that restricts itself on operations of business vis-a-vis conducive regulations installed within a particular state. Things like fair taxes, business returns, investor protection, respect of contractual obligations and the extent of bureaucracy in opening a business. etc. Considering EDB Kenya is light years ahead of Tanzania, no doubt about it.

But when we speak about Protectionism we mainly restrict ourselves on International Trade and related policies a nation undertakes to protect local manufacturers. It mainly focuses on balance of imports to ensure stability of domestic industries through the use of tariffs and non-tariff barriers. Kenya has the most industries in East Africa henceforth it is the most protectionist state than Tanzania.

NB: Ease of Doing Business is not the same as Protectionism. I believe after laying this ground work we can debate now.

Actually Kenya may be protectionist against certain cheap raw goods that we already produce but in general Kenya is pretty permissive. We allow too many Chinese goods into Kenya and I feel like we should be more restrictive on that front. As for East Africa, it is true that Ugandan milk or sugar is sometimes denied entry into Kenya but that is simply because Uganda produces the very same goods that are produced in Kenya and they sell them at a cheaper price to undercut the market. If Uganda adds value to their goods and starts producing goods that Kenya does not produce then we will accept their products. But if they insist on selling things to us that we already produce then there will always be a problem.

 

[chongchung]

What is Kenya's position globally or continentally, as far as ease of doing business is concerned and what is Tanzania's position? Maybe we should begin at this point, before we start this endless blame game.

We don't discuss global or continental debate but Tanzania and Kenya debate

This guy got answers

 

[Smart911]

Majirani mna mbwembwe sana...

 

[Don YF]

Majirani mna mbwembwe sana...

Hii section inaitwa Kenyan News and Politics, so any news that concern Kenya ina anikwa humu, ila ni nyinyi mmejaza posts humu kuliko sisi wakenya.., malengo yenu ni kuponda, sisi tunaonyesha mema yanayo tendeka kwetu, ila wivu inatatiza wengi wenu sana., we always see things from cup half full perspective, not half empty.

 

[Ndinani]

I remember when Tanzania blocked it's citizens from participating in safaricom and other big Kenyan IPOs because BoT feared that there will be capital flight.
Tanzanians would be eating some of this money too if it wasn't for ujamaa mentality and fear.

you gotta spend money to make money

Remember KCB is listed on the DSE hence the Tanzanians who hold those shares will also be entitled to the KCB declared dividends!!

 

[pingli-nywee]

We don't discuss global or continental debate but Tanzania and Kenya debate

This guy got answers

We are discussing trade, inter-country trade continental or otherwise, is by extension international trade. It is trade between countries that have recognized international borders. Between Kenya and Tanzania, which country has the most trade barriers and tariffs against the other?

 

[MALCOM LUMUMBA]

Protectionism, in its true sense is established through institutionalized legal framework, open and and above board, advertised to all and sundry, potential investors included. Refer to Kenya-UG trade tiff that was caused by Kenya's parliament. After passing a law locking out eggs and other related products from the Pearl, to protect Kenyan chicken farmers. Protectionism, when unofficial(hence illegal, in law or morally) becomes purely ill-intended bureaucracy. Hence my prior point about the EDB, which from time immemorial, does not mix well with bureaucracy, its major hindrance.

You have a point when protectionism is arbitrary it tends to spiral out of control and becomes a bureaucratic nightmare. But we must agree on one thing, that protectionism and EDB are remotely related and we should not mix the two: Because EDB mainly deals with operations of the businesses not necessarily foreign ones (Investors). The World Bank can still get some good projections of a country's EDB by mainly looking at how domestic firms operate. Do we agree on this ???

This is my hypothesis: A country can be too protective, yet have a descent EDB, a good example is China and the European Union. Therefore, Protectionism and EDB do not always coalesce. Consider the following:

Protectionism and bureaucracy are just two sides of the same coin, depending on the different view points, of the 'victim'(potential investors) and the 'perpetrator'(foreign authority/govt.).

Probably, but i don't see it that way. And here's why: Not all form of protectionism is arbitrary and political (This has to sink in your head) as Neo-liberal economists teach us. It is an effective measure to remedy trade deficits and dumping. Unless you convince me otherwise, anti-dumping measures are purely economic.

Hence the presence of such policies(protectionist) can even be determined, albeit falsely, through feelings instead of facts. Especially mistrust, driven by political factors not related to trade.

Agreed, but this does not still aver that EDB and Protectionism will always coalesce. Kenya has good EDB, but is still a brutal protectionist state. If you wish to get an evidence of this, I'll be more than happy to provide.

You're welcome brav.

 

[MALCOM LUMUMBA]

Actually Kenya may be protectionist against certain cheap raw goods that we already produce but in general Kenya is pretty permissive. We allow too many Chinese goods into Kenya and I feel like we should be more restrictive on that front. As for East Africa, it is true that Ugandan milk or sugar is sometimes denied entry into Kenya but that is simply because Uganda produces the very same goods that are produced in Kenya and they sell them at a cheaper price to undercut the market. If Uganda adds value to their goods and starts producing goods that Kenya does not produce then we will accept their products. But if they insist on selling things to us that we already produce then there will always be a problem.

Excellent point, sometimes Protectionism is purely economic especially when it combats dumping and remedying trade deficits. Uganda dumps cheap milk and sugar to undercut the market and emasculate Kenyan manufacturers from a descent income. This is totally understandable to any reasonable human being. Therefore, since Kenya has most industries in East Africa it is the most protective state. (This is a fact not a mere speculation).

What most of us disagree upon is when protectionism is diabolically weaponised to suit a nationalistic agenda, which in most cases Kenya is Master Ace in doing. Consider this example, in 2018 Kenya banned fish imports from China responding to an outcry from local fish traders. It was a reasonable move, but it was not sustainable because Kenya's fish demand is 500,000 tonnes per annum, and local traders can only produce 135,000 tonnes.

This created a 27% deficit which local traders could not remedy and in-turn the prices skyrocketed making consumption of fish difficult for ordinary Kenyans. This is a fact,....

 

[MALCOM LUMUMBA]

We don't discuss global or continental debate but Tanzania and Kenya debate

This guy got answers

There you are, Kenya is a brutally protectionist state shouldering an unsustainable mantra of inward economic looking.