Bank investors face dividend squeeze in CBK capital plan

Large banks in Kenya, including Equity, KCB, and Co-op Bank, are now required to hold higher capital levels to comply with new regulations from the Central Bank of Kenya (CBK). This may lead to a reduction in dividends paid to investors as banks need to bolster their reserves to absorb financial losses. In 2025, the 12 listed banks paid total dividends of Sh117.2 billion, accounting for nearly half of the dividends paid by all Nairobi Securities Exchange-listed firms.