Kenya’s Co-op Bank Lifts Dividend by 50%

KENYA · BANKING

Kenya’s Co-operative Bank has given its shareholders a clear raise: Co-operative Bank of Kenya (Co-op Bank), listed in Nairobi, will pay an interim dividend of 1.50 Kenyan shillings (KSh) a share (about 1.2 US cents) on 4 December 2026. That is 50% more than the KSh1.00 (about 0.8 US cents) it paid a year ago.

The Nairobi bank said on Wednesday 11 November 2026 that Co-op Bank Group’s profit before tax for the nine months to 30 September rose 19.6% to KSh35.9 billion (about US$276 million). Investors in Nairobi-listed bank shares, and Kenyans who borrow from or save with the bank, are the people most affected.

The group grew profit faster than its costs and cleaned up its loan book. It shared the gain with shareholders through a 50% bigger interim dividend.

Where the Profit Came From

The group’s profit before tax reached KSh35.9 billion in the nine months to 30 September 2026, against KSh30.0 billion (about US$231 million) a year earlier. Profit after tax grew faster, up 27.2% to KSh27.4 billion (about US$211 million) from KSh21.6 billion (about US$166 million).

Net interest income, the gap between what the group earns on loans and pays on deposits, grew 12.7% to KSh51.0 billion (about US$393 million). Total operating income rose 11.6% to KSh75.2 billion (about US$579 million).

Operating expenses grew only 5.3%. Cost of risk, a measure of loan losses against the loan book, fell to 1.4% from 2.5%.

A Bigger, Cleaner Loan Book

The group’s net loans and advances climbed 22.2% to KSh496.9 billion (about US$3.8 billion), and customer deposits rose 14.8% to KSh642.5 billion (about US$4.9 billion). Total assets grew 11.3% to KSh907.4 billion (about US$7.0 billion) from KSh815.3 billion (about US$6.3 billion).

The group’s share of loans that borrowers have stopped repaying, known as the non-performing loan ratio, fell to 12.9% from 17.1% a year earlier. The group’s cost of risk, noted above, was 1.4% against 2.5% a year earlier.

Return on average equity, a gauge of profit earned on shareholders’ money, rose to 21.3% from 19.4%. The cost-to-income ratio before provisions stood at 46.4%.

Why It Matters

The 50% dividend rise turns a profit gain into cash. Based on the 5,867,174,695 shares on the bank’s register at 30 April 2026, the KSh1.50 payout comes to about KSh8.8 billion (about US$68 million), or roughly 32% of nine-month profit after tax by our calculation.

Co-op Holdings Co-operative Society, a member-owned society that is the bank’s largest shareholder, held 64.56% of the shares on that register. On the same arithmetic it would receive about KSh5.7 billion (about US$44 million), so most of the dividend goes to that one society.

What to Watch Next

Shareholders on the register at the close of business on Wednesday 25 November 2026 qualify for the interim dividend, which is paid on Friday 4 December 2026. The bank’s next set of full-year results will show whether the nine-month pace holds.

Kingdom Bank, a Kenyan subsidiary of Co-op Bank, completed its upgrade of Finacle, a core banking software system, in October 2026, after earlier rollouts at Co-operative Bank of Kenya and Co-op Bank of South Sudan Ltd. Our Kenya coverage page tracks the wider story, and our report on the US$50 million currency swap with the European Bank for Reconstruction and Development (EBRD), the first use of a US$100 million facility covers its recent funding deal.

What It Means for You

For investors who hold Nairobi-listed bank shares, the result shows a lender growing loans by more than a fifth while bad debts shrink. Dividends are paid in Kenyan shillings, so returns for a US holder also depend on the exchange rate, which stood near KSh129.85 to the dollar on 11 November 2026.

For Kenyan micro, small and medium enterprises (MSMEs), the bank is lending more. Co-op Bank Group said 273,783 small businesses were onboarded to its tailored packages and that MSMEs make up 16.7% of its loan book.

What Is Not Known

The bank has not said whether the interim payout signals a higher full-year dividend. It has also not published a profit figure for the third quarter alone in its press release.

Frequently Asked Questions

How much is Co-op Bank’s interim dividend?

The board approved KSh1.50 a share, up 50% from KSh1.00 (about 0.8 US cents) last year. It goes to shareholders on the register at the close of business on 25 November 2026 and is paid on 4 December 2026.

How much profit did Co-op Bank make?

Group profit before tax was KSh35.9 billion (about US$276 million) for the nine months to 30 September 2026, up 19.6%. Profit after tax was KSh27.4 billion (about US$211 million), up 27.2%.

Is Co-op Bank’s loan quality improving?

Yes. The group’s non-performing loan ratio fell to 12.9% from 17.1% a year earlier, and the cost of risk dropped to 1.4% from 2.5%.

Who owns Co-op Bank of Kenya?

Co-op Holdings Co-operative Society held 64.56% of the shares at 30 April 2026, according to the bank’s shareholder profile. The register listed 112,434 shareholders in total.

Sources: Co-operative Bank of Kenya, Q3 2026 financials press release, 11 November 2026 (https://www.co-opbank.co.ke/wp-content/uploads/2026/11/Press-Release-Coop-Bank-Q3-2026-Financials.pdf); Co-operative Bank of Kenya, shareholder profile as at 30 April 2026 (https://www.co-opbank.co.ke/wp-content/uploads/2026/05/CO-OPERATIVE-BANK-LIMITED-SHAREHOLDER-PROFILE-AS-AT-30.04.2026-1.pdf); exchange rate from RT market data, USD/KES 129.85, 11 November 2026.

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