Rwanda | Bank of Kigali increases dividends by 50 percent
Bank of Kigali, Rwanda’s biggest bank by market valuation has announced that it will increase the dividend levels by some 50 percent – on the back of a successful listing in the Rwanda Stock Exchange (RSE).
BK Executives announced February 12 that all people who bought the bank’s shares when it was floated on the RSE in June 2011 will get 50 percent as dividend in next 3 years.
“Within the next 3 years the bank will be giving dividends of 50 percent to shareholders as dividends and then invest back for the bank’s growth,” said chief executive officer, James Gatera at a press briefing.
The shareholders will be informed of the development at the annual general meeting April 27.
The overall dividend payout in respect of 2011is estimated at RwF 4.1 billion (US$ 6.8 million at the current exchange rate), this would result in the annual of approximately Rwf 6.2 per share, or an approximately 5 per cent dividend yield based on the current share price of 125.
Under Rwandan tax law currently in effect, dividends paid on ordinary shares listed on the Rwanda stock Exchange are subject to withholding tax of 5 percent for resident taxpayers and for East African community, non -residents of Rwanda or EAC 15 percent.
Bank of Kigali has total assets of 60 billion Rwf, according to bank officials and hope clients will have access to more loans.
Rwanda is currently growing strong in financial investments with the recent entrants of KCB and Equity Bank from Kenya, making the financial business boost in Rwanda at a high level.