Absa Kenya Raises Dividend as Profits Grow

Absa Bank Kenya has increased its dividend payout after posting higher profits for the year ended December 31, 2025, even as income from interest declined. The bank raised its dividend per share by 17 percent to Sh2.05, following a 10 percent growth in net profit to Sh22.9 billion. Shareholders will receive the payout through an interim dividend of Sh0.20 and a final dividend of Sh1.85 per ordinary share.

The higher payout reflects the bank’s effort to reward shareholders while maintaining steady financial performance in a challenging environment. Although lending margins came under pressure, Absa cushioned its earnings through stronger income from fees and commissions.

Non-interest income rose by 12 percent to Sh18.1 billion, helping offset a 6 percent drop in net interest income, which declined to Sh43.3 billion. This shift shows that the bank is relying more on services such as transactions, payments, and other fee-based activities as borrowing conditions change across the sector.

Customer deposits grew slightly by 1 percent to Sh372.4 billion, while loans and advances also increased by 1 percent to Sh312 billion. The modest growth points to cautious borrowing and lending as banks and customers adjust to changing interest rates.

Absa’s management said the results show disciplined operations and a focus on supporting customers while still delivering value to shareholders. The bank continued to serve individuals and businesses during the year, even as the wider banking sector dealt with slower credit growth and changing rate conditions.

Overall, the results underline Absa Kenya’s ability to remain profitable and maintain shareholder returns, despite weaker interest income and a shifting earnings mix.