Kirubi family tops Sh521m Centum dividend windfall

Late industrialist Chris Kirubi [File]

Billionaire heirs of the late industrialist Chris Kirubi and other top shareholders are set for a bumper payday after Centum Investment Company declared a record Sh521 million dividend.

This comprises an ordinary dividend of Sh281 million (Sh0.42 per share) and a special dividend of Sh240 million (Sh0.36 per share).

The total payout of Sh0.78 per share represents a dramatic increase from the previous year's Sh210 million ordinary dividend, with the additional special dividend reflecting the successful conversion of long-held portfolio value into cash, the investments firm said.

The Kirubi family, which holds a 30.94 per cent stake through the late billionaire's estate, is set to pocket Sh160.6 million from the combined payout.

Serial billionaire shares investor John Kibunga Kimani, who holds vast portfolios of shares across the Nairobi Securities Exchange, is in line for Sh54.1 million from his 10.43 per cent stake.

The Kenya Development Corporation, the state-owned investment vehicle with a 22.97 per cent stake, will receive Sh119.2 million.

The special dividend of Sh240 million reflects the successful realisation into cash of value created across the portfolio over several years, the company’s board said.

As an investment holding company, Centum says it frequently recognises increases in value through fair value movements before those gains are ultimately realised through strategic transactions or investment exits.

"Part of the cash realised during financial year 2026 represents value that had already been recognised in previous financial periods under IFRS and, therefore, does not flow through the current year's Statement of Comprehensive Income," the board said in its results announcement.

"The board believes it is appropriate to return a portion of these realised proceeds to shareholders while retaining sufficient revenue reserves and financial flexibility to continue funding investment opportunities. The special dividend therefore represents both the realisation of value created over several years and the Board's continued commitment to disciplined and balanced capital allocation."

The bumper payout comes as Centum restored a debt-free holding company balance sheet, freeing up cash that had been earmarked for deleveraging to instead flow back to shareholders in what the board called a "new phase" of the company's evolution.

The company said it completed repayment of all holding company debt during its financial year (FY2026), concluding a capital allocation strategy that had prioritised balance sheet strengthening over shareholder distributions since 2020.

"Going forward, capital generated from the investment portfolio will increasingly be allocated across three strategic priorities: growing recurring annuity income; funding future value-creating investments; and progressively enhancing shareholder returns," the board said.

"The board expects future shareholder distributions to comprise a growing ordinary dividend supported by recurring annuity income together with periodic special dividends as significant investment realisations occur."

Centum's group total comprehensive income plunged 84.1 per cent to Sh518.4 million for the year ended March 2026, down from Sh3.26 billion a year earlier, weighed down by the deeper loss at Two Rivers Special Economic Zone and moderating fair value gains on investment properties.

The Two Rivers Development Group, which operates one of the largest malls in East Africa, remained a persistent drag on earnings, posting a loss of Sh239.6 million in the period from a loss of Sh242.7 million a year earlier, while the Two Rivers Special Economic Zone swung to a deeper loss of Sh964 million from a profit of Sh88 million the previous year, weighed down by substantial funding and other costs.

Centum Real Estate delivered operating profit of Sh689 million, down from Sh1.5 billion the previous year, as the business continued to hand over units at its flagship Two Rivers development.

The company has begun handing over the first batch of 175 units at its Cascadia apartment complex, valued at more than Sh5.2 billion.

Investment operations emerged as the star performer, posting a Sh1.52 billion profit, driven by Sh1.57 billion in investment and other income. The financial services segment contributed a modest Sh33.5 million profit, while trading businesses remained under pressure, posting a loss of Sh399.7 million.

The dividend will be paid on or before December 19, 2026 to shareholders on the register as at the book closure date, subject to shareholder approval at the upcoming Annual General Meeting. Chief Executive James Mworia, who holds 5.7 million shares, is in line for a Sh4.4 million payout from the record distribution.