Co-op Bank declares pioneer interim dividend as profit Sh22b
Business
By
Brian Ngugi
| Nov 14, 2025
Co-operative Bank of Kenya (Coop Bank) has declared its first-ever interim dividend, signalling robust financial health and confidence in its future outlook after posting a Sh21.6 billion profit after tax for the first nine months of this year. The tier one lender, Kenya’s third-largest by assets, reported a 12.3 per cent rise in profit after tax to Sh21.6 billion, up from Sh19.2 billion in the same period last year.
The board declared an interim dividend of Sh1 per share. The lender has until now maintained a single annual dividend payout since its listing in December 2008.
In a statement, Group Chief Executive Gideon Muriuki said the dividend underscores the lender’s strategic milestone. “This is the first-ever interim dividend declared by the bank, setting the stage for additional dividend declarations in the same financial year,” said Muriuki.
“This marks a significant milestone and underscores the confidence that management has in the bank’s strong performance and outlook.”
The payout signals a major policy shift aimed at enhancing shareholder returns, coinciding with a 24.5 per cent growth in shareholders’ funds to Sh164.2 billion.
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The dividend will provide a substantial cash injection to Co-op Holdings Co-operative Society, the bank’s majority shareholder with a 64.5 per cent stake, and other key investors. The bank’s strong performance was anchored on multiple growth pillars. A 22.8 per cent surge in net interest income propelled total operating income up 13.9 per cent to Sh67.4 billion.
This was supported by a 6.6 per cent expansion of the loan book to Sh406.5 billion and robust digital lending. Muriuki highlighted the success of the bank’s digital strategy, noting that “over 90 per cent of transactions now happen through digital and alternative channels.”
The M-Co-op Cash mobile wallet emerged as a key driver, disbursing Sh54.2 billion in loans year-to-date, including Sh8.2 billion to MSMEs.
The bank’s subsidiaries delivered outstanding performances.
Co-op Trust Investment Services saw profit before tax soar 145 per cent to Sh624 million, while the bancassurance arm posted a Sh1.15 billion profit. Kingdom Bank and Co-op Bank South Sudan, also contributed significantly to the group’s earnings. Despite the industry’s shift towards digital banking, Co-op Bank has been expanding its physical presence, growing its branch network to 216 outlets. “We are accelerating our premium banking strategy with the launch of state-of-the-art executive banking centres,” Muriuki said, referencing new facilities in Nairobi’s Westlands and Nyali.
The expansion created 426 new jobs, increasing total staff strength to 5,826, even as the bank maintained operational efficiency with a cost-to-income ratio of 45.1 per cent.
Earlier this week, Kingdom Bank opened its 25th branch in Kariobangi, Nairobi, aiming to expand access to financial services for Kenya’s growing network of entrepreneurs and small business owners.
The new branch on Outering Road brings the bank closer to one of Nairobi’s most industrious communities. Kariobangi is home to thousands of traders, fabricators and small-scale manufacturers, representing the heartbeat of Nairobi’s MSME subsector.
Kingdom Bank Managing Director Anthony Mburu said the expansion is part of the lender’s long-term strategy to strengthen its presence in key business hubs across the country.
“Kariobangi represents the true spirit of Kenya’s enterprise - hardworking people who keep Nairobi running every single day.
“By opening our 25th branch here, we are deepening our connection with the business communities that drive our economy. Our goal is to be a financial partner who is accessible and available to support the growth of business,” he said.