Festive Madaraka Day for Jubilee investors as they pocket Sh978 million in dividends

Shareholders approved a final dividend of Sh11.50 per share at the company’s 87th annual general meeting in Nairobi.

Combined with the interim dividend of Sh2 already paid out, the total dividend stands at Sh13.50 per share, the highest in Jubilee’s history.

“We are proud to deliver this return to our shareholders. It reflects both our strong performance and our optimism for the future,” chairman Zul Abdul said, highlighting the payout as evidence of the insurer’s financial health and long-term growth strategy.

Even so, its share price that has been rising due to high demand following impressive full year results, hitting a high of Sh233 on May 27, dropped by 100 basis points to close the market on Friday at Sh227.

Meanwhile, South African Insurance giant, Sanlam, listed at the Nairobi bourse on Wednesday, announced raising Sh2.5 billion in a cash call that saw 100 per cent subscription. Investors took up to 82 per cent of the rights, with underwriters filling the remaining gap.

The rights issue was priced at Sh5 per share, allowing shareholders to purchase 125 new shares for every 36 held. A total of 500 million new shares were offered. This saw its share price at NSE rally to Sh7.04, recording a 2.9 per cent gain over its previous closing price of Sh6.84.

The listed insurance firm bounced back to profits after a 4-year loss making streak on the back of a surge in investment income. It reported an increase in net profit to Sh1.05 billion in 2024 from a loss of Sh126.6 million in 2023.

There was a strange occurrence in NSE top gainers for the week after listed oil marketing company TotalEnergies’s share price gained close to six per cent to close the week as the second top gainer after Home Afrika, despite reporting a 51 per cent decline in net profit to Sh1.49 billion for the year ended 31 December 2024.

The sharp drop was attributed to reduced sales, aggressive price competition, rising finance costs, and increased operating costs not fully covered in margins.

Overall, NSE recorded mixed results during the week, with the Nairobi Securities Exchange, the NASI share price index increasing by 0.46 per cent, while the NSE 25 and NSE 20 indices decreased by 1.01 per cent and 0.44 per cent, respectively. Market capitalisation increased by 0.45 per cent, while total shares traded and equity turnover decreased by 0.31 per cent and 14.28 per cent.

Treasury bills continued to attract investors, despite declining yields. Market experts attribute this to the government’s pressure on banks to lower lending rates amid increasing default risks among household borrowers and businesses.

The auction of May 29 received bids totalling Sh55.1 billion against an advertised amount of Sh24 billion, representing a performance of 229.6 per cent. Interest rate on the 91-day, 182-day and 364-day treasury bills declined slightly to 8.2, 8.6 and 10 per cent respectively.

Bond turnover in the domestic secondary market increased by 7.37 per cent during the week to Sh55.72 billion.