Local individual investors bought additional 9.72 million shares of KCB Group with a current market value of Sh836.3 million in the three months to June 2026, lifting their stake in the company to 24.73 percent.

Disclosures by the Nairobi Securities Exchange-listed firm show that local retail investors grew their holdings to 794.8 million shares at the end of June, up from 785.1 million shares at the end of March.

The shares were bought from local institutions and foreign investors who traded part of their holdings to take profits as the bank’s share price rallied.

Local institutions cut their ownership by 5.87 million shares to 1.501 billion shares, resulting in their stake falling to 46.74 percent from 46.93 percent.

The National Social Security Fund maintained its ownership in KCB at 10.20 percent. The bank’s top shareholder is the National Treasury, with an interest of 19.76 percent.

Foreign investors sold 3.84 million shares, trimming their holdings to 281.6 million shares. The sales reduced their stake to 8.77 percent from 8.88 percent.

KCB is among the five Kenyan blue chip stocks included on the closely watched Morgan Stanley Capital International main frontier markets index, which gives them visibility to foreign investors.

The partial share sales by local institutions and foreign investors came as the bank’s stock rallied on higher earnings and dividend payout in a general bull market.

The lender’s stock has been among the leading gainers at the Nairobi bourse since 2024, making it an attractive bet for investors, but also a candidate for regular profit-taking.

KCB’s share price stood at Sh86 on Friday, having climbed from Sh50.5 on September 4, 2025. The bank grew its net profit by 10.7 percent to Sh17.8 billion in the first quarter ended March 2026.

The net profit rose from Sh16 billion the year before on the back of cheaper deposits and higher income from transactions, including foreign exchange trades.

As interest rates fell, banks made deeper cuts in what they pay on customer deposits compared to interest charged on loans, lifting their margins as seen through net interest income.

KCB had paid a total dividend of Sh7 per share or Sh22.5 billion for the year to December 2025, with the payout rising from the prior year’s Sh3 per share or Sh9.6 billion.

The larger dividend was partly funded from the proceeds of the sale of the National Bank of Kenya to Nigeria’s Access Bank.

“In November 2025, the board approved the payment of an interim dividend of Sh4 per ordinary share. This comprised an even split of Sh2 per ordinary share as interim dividend for the year and a special dividend from the sale of NBK,” the bank said in its latest annual report.

“The board has further recommended an additional final dividend of Sh3 per ordinary share for your consideration and approval. This will comprise Sh2 per ordinary share as final dividend for the year and Sh1 per ordinary share as a further special dividend from the sale of NBK.”

The bank’s share price has gained 30.8 percent year-to-date, closing at Sh86 on Friday.

→ cmwaniki@ke.nationmedia.com

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