Co-operative Bank of Kenya has raised its interim dividend by 50 percent to Sh1.50 a share, after profit after tax rose 27.2 percent to Sh27.4 billion for the nine months to September 30, 2026. Profit before tax reached Sh35.9 billion, up 19.6 percent, while the non-performing loan ratio fell to 12.9 percent from 17.1 percent.
The board approved an interim dividend of Sh1.50 per share, up from Sh1.00 paid in the same period last year. The shares go ex-dividend to shareholders on the register at the close of business on November 25, 2026, and the dividend will be paid on December 4. For a bank with most of its shares held by a co-operative society, the higher payout is also a direct benefit to members.
Profit growth outpaced expense growth. Operating income rose 11.6 percent to Sh75.2 billion, while operating expenses increased by a slower 5.3 percent. That gap between income and costs drove profit before tax up from Sh30 billion to Sh35.9 billion, and it is the main reason the bank could afford a larger dividend.
The balance sheet also expanded. Total assets grew 11.3 percent to Sh907.4 billion, and customer deposits rose 14.8 percent to Sh642.5 billion. Group net loans reached Sh496.9 billion, up 22.2 percent, according to Rio Times.
Asset quality is the standout. The non-performing loan ratio fell to 12.9 percent from 17.1 percent a year earlier, a decline of about 4 percentage points. Lower bad loans reduce the provisions the bank must set aside, which supports profit and makes future dividends more secure.
The third quarter also looks strong. Profit after tax for the first half was Sh18 billion, reported in August, so the nine-month figure implies about Sh9.4 billion of profit in the July to September quarter. That is our calculation from the two reported figures.
The bank’s subsidiaries contributed to the result. Kingdom Bank, which is 90 percent owned by the group, saw its net profit rise 80.1 percent in the first half, and Co-optrust Investment Services grew funds under management to Sh505.2 billion. Co-op Bank of South Sudan nearly quadrupled its pre-tax profit.
Ownership shapes the dividend’s reach. Co-op Holdings Co-operative Society held 64.56 percent of the bank’s shares at April 30, 2026, according to the bank’s shareholder profile, and the register listed 112,434 shareholders in total. A larger dividend therefore flows mostly to the co-operative movement, while smaller shareholders also benefit.
The full-year picture is also strong. For 2025, the bank earned Sh39.9 billion in profit after tax and raised its total dividend to Sh2.50 a share, with a record payout proposed in March. The interim increase suggests the board expects that momentum to continue.
The next signals will be the December 4 payment, the bank’s full-year 2026 results and whether the non-performing loan ratio keeps falling. Investors will also watch whether deposit growth keeps pace with lending.
