Gideon Muriuki’s 1.75 Percent Stake in Co-op Bank Yields Sh154 Million in Dividends

Co-operative Bank CEO Gideon Muriuki for the year ended December 2022 received a windfall of Sh154 million from his 1.75 percent stake in the bank.

This is a significant increase from the Sh102.68 million he earned previously, and is due to the bank’s decision to raise dividends to Sh1.50 per share.

The move underlines Muriuki’s position as one of Kenya’s wealthiest CEOs.

Muriuki has been at the helm of Co-op Bank for more than two decades and owns a significant stake in the lender.

Last year, the bank reported a 33 percent increase in net profit to Sh22 billion. The growth in non-funded income was a major contributor to the bank’s improved financial performance.

The increase in dividends is a major boost to the co-operative societies, which are the majority shareholders of the bank.

“We feel confident to recommend a much-enhanced dividend payout as we have over the years built sufficient capital buffers and retained earnings, in addition to the sustained profitability of our business,” said Co-operative Bank CEO Gideon Muriuki, whose bank raised dividends 50 percent.

Co-op Bank’s strong financial performance has also resulted in a sustained increase in shareholder value, with a competitive return on equity of 21.2 percent, according to Muriuki.

The decision to raise dividends is expected to further strengthen the bank’s position in the market and attract more investors.

Co-op Bank’s operating income grew by 17.9 percent from Sh60.4 billion to Sh71.3 billion.

About two years ago, Gideon Muriuki sold 14.7 million shares of the lender with a current market value of Sh160 million in the five months ended May, according to regulatory filings.

He has been selling and buying the bank’s shares over the years in transactions that have seen his stake oscillate between 1.7 per cent and two per cent.

The latest transactions reduced his holdings from two per cent in December 2019 to 1.75 per cent.

Muriuki’s bonus was way higher than that paid to chief executives of other rival banks in Kenya.

He is ranked amongst the highest-paid CEOs in Kenya with a monthly earning of Ksh31.37 million, which equates to a Ksh376.5 million yearly salary.

This makes him the highest-paid firm CEO in Kenya. His compensation consists of a salary of roughly Ksh105 million and a massive bonus of Ksh271 million.

The story was first published by :https://www.businessdailyafrica.com/bd/markets/capital-markets/kenyattas-equity-ceo-top-in-sh63bn-bank-dividends–4178088