Centum Investment Company has announced a total dividend of Sh521 million for the financial year ending March 2026. This figure includes an ordinary dividend of Sh281 million and a special distribution amounting to Sh240 million.

The ordinary dividend stands at Sh0.42 per share, while the special payout is Sh0.36 per share. The combined dividend is approximately 2.5 times higher than the previous year’s payout of Sh210 million.

Financial Performance

The group’s net profit dropped by 8.4 percent to Sh743.91 million from Sh812.81 million in the prior year. However, Centum’s company-level net profit surged 87 percent, reaching Sh1.02 billion compared to Sh547.13 million previously.

The discrepancy arises because consolidated earnings reflect investments at various lifecycle stages, which may not align with cash inflows to the holding company.

Dividend Drivers and Strategy

  • Ordinary dividend growth: Attributed to increased recurring annuity income and higher investment in marketable securities.
  • Special dividend: Result of realising cash from several strategic investment exits over recent years.

Centum recently completed the sale of its remaining stake in Sidian Bank, ending a 25-year association, and sold a 60 percent stake in Nabo Capital. Additionally, repayments of shareholder loans by portfolio companies contributed significantly to cash inflows.

James Mworia, Centum’s Managing Director, emphasized that while part of the realised proceeds is being returned to shareholders, the company will maintain adequate reserves to fund future investments.

Outlook

The board anticipates that future dividends will combine growing ordinary payouts supported by steady annuity income with occasional special dividends following major investment realisations.

Segment Performance

  • Investment operations: Pre-tax earnings rose to Sh1.52 billion from Sh1.17 billion, benefiting from higher dividend and interest income and reduced finance costs.
  • Real Estate: Pre-tax profit declined to Sh199.98 million from Sh1.51 billion.
  • Trading business: Pre-tax loss narrowed to Sh399.69 million from Sh489.83 million, with losses from Two Rivers Development slightly improving.
  • Two Rivers Special Economic Zone: Reported a pre-tax loss of Sh964.09 million compared to a profit of Sh88.37 million previously.
  • Development Operations: Recorded a pre-tax loss of Sh796.64 million.