The board of directors of Standard Chartered Bank Kenya has proposed a final dividend of KSh 7.5 for the FY 2019. This is a revision down from an earlier proposed a final dividend of KSh 15 payable to registered shareholders.
The economic crisis brought by the COVID-19 pandemic has necessitated the change. The board also recommends a bonus issue, giving shareholders one new share for every ten ordinary shares.
The board, after careful consideration of the events, particularly the rapidly unfolding economic crisis that has come out of the COVID-19 pandemic, has decided to vary its recommendation and instead recommend to the shareholders the payment of a final dividend for the year ended 31 December 2019 of KSH 7.50 for every ordinary share of Ksh 5.00Nancy Oginde, Stanchart Board Secretary.
According to the company statement, the proposed changes will enable Stanchart to support businesses, individuals, and the community. Moreover, it will help preserve its stable capital ratios and invest in the company for the longterm.
Shareholders of the bank will hold a virtual Annual General Meeting on 24 July 2020 to ratify these proposals.
Nevertheless, only shareholders registered on the company’s register by 27 April 2020 will receive the dividends.