Co-operative Bank of Kenya has become the first bank to announce it will next week pay Sh5.86 billion dividend ahead of annual general meetings (AGM) that have been postponed in the wake of coronavirus.
The bank says it will pay Sh1 per share dividend to April 23, an earlier date compared to last year when it made the shareholder payouts in June.
With the AGMs uncertain following restrictions on mass gatherings for fear of coronavirus infections, the lender has opted to pay dividends without receiving approval at the shareholder meeting.
This is in line with the advice from the Capital Markets Authority (CMA), which on April 3 allowed firms to pay dividends without approval from shareholders.
“With the current Covid-19 challenges, the need to release the much-needed funds to the grassroots in the over 15-million-member co-operative movement and in line with CMA guidelines, the bank is progressing to make the dividend payment for ratification at the next AGM,” said the bank in a notice.