In the most recent financial year cycle, almost half of the Nairobi Securities Exchange (NSE) listed companies did not pay dividends, revealing muted returns for bourse investors.
According to market data, 28 of 59 listed companies with active operations did not distribute dividends for their most recent fiscal years, with some companies’ payout droughts lasting years.
Due to the absence of cash distributions from companies like Kenya Airways, HF Group, Home Afrika, and WPP Scan group, investors have been exposed to significant losses as a result of the sharp decline in the value of their shares.
For example, national carrier Kenya Airways, which is delisted from the NSE but still runs, has consistently posted losses over the past few years, in contrast to Kenya Power, Sanlam, and Britam, which have been working to turn a profit.
Some of the companies like Kenya Power have not declared dividends despite recovering to post profits, indicating that they still require more capital.