Dividend Stocks Kenya 2026: Top 10 Companies Paying Regular Dividends

Imagine earning Ksh 10,000+ every year without working—just from owning shares. That’s the power of dividend stocks. In this comprehensive guide, you’ll discover the top 10 dividend-paying companies in Kenya for 2026, their yields, payment history, and exactly how to start earning passive income from dividends today.

The dividend opportunity in Kenya is significant. NSE companies paid out over Ksh 48 billion in dividends in 2025, with average yields of 5-8%—far better than bank savings accounts offering just 2-3%. Some companies have maintained consistent dividend payments for over 20 consecutive years.

Even better? Dividends are completely tax-free for individual investors in Kenya, making dividend stocks one of the most tax-efficient ways to build wealth.

Understanding Dividend Stocks in Kenya

Before exploring the best dividend stocks in Kenya, it’s important to understand what dividends are and why they’re such powerful wealth-building tools.

What Are Dividends?

Dividends are cash payments companies make to shareholders, usually from profits. Think of it as your share of the company’s success—a reward for being a part-owner.

Simple Example:

• You own: 100 Safaricom shares
• Dividend announced: Ksh 1.37 per share
• You receive: 100 × Ksh 1.37 = Ksh 137
• Payment method: Direct to M-Pesa or bank account
• Frequency: Once per year (usually September)
• Tax: Ksh 0 (individuals pay zero dividend tax!)

Types of Dividend Payments

Annual Dividends (Most Common):

• Paid once per year
• Examples: Safaricom, Equity Bank, KCB
• Usually announced at the Annual General Meeting
• Payment occurs 1-2 months after announcement

Interim Dividends (Mid-Year):

• Paid mid-year before the annual dividend
• Examples: Some banks like Equity and Co-op Bank
• Not guaranteed every year
• Typically smaller than the final dividend

Special Dividends (Rare):

• One-time payments from exceptional profits
• Usually when a company sells a major asset
• Don’t rely on these for regular income planning

Understanding Dividend Yield

Dividend yield is the most important metric when evaluating dividend stocks in Kenya.

Formula:

Dividend Yield = (Annual Dividend ÷ Current Share Price) × 100

Example – Safaricom:

• Annual Dividend: Ksh 1.37
• Current Price: Ksh 17.50
• Yield: (1.37 ÷ 17.50) × 100 = 7.8%

What’s a Good Dividend Yield?

Yield Range	Rating	Risk Level	Examples
2-4%	Low	Very Safe	Government bonds
4-6%	Moderate	Safe	Large blue chips
6-8%	Good	Medium	Most NSE stocks
8-10%	High	Medium-High	BAT, EABL
10%+	Very High	HIGH RISK	Often unsustainable

Warning Signs:

• Yields over 12% often signal trouble
• Company might be struggling
• Dividend likely to be cut soon
• Share price probably crashing

Sweet Spot: Look for 6-9% yields with growing dividends over 5+ years.

Why Dividend Stocks Beat Bank Savings

Feature	Dividend Stocks Kenya	Bank Savings	Money Market
Returns	6-10% yield	2-3%	8-9%
Tax	0%	15%	0%
Growth Potential	YES (price + dividends)	NO	NO
Inflation Protection	YES	NO	Barely
Liquidity	High (sell anytime)	High	High

Real Example – Ksh 100,000 for 10 Years:

Bank Savings (2.5%, 15% tax):

• Year 10: Ksh 123,000
• Inflation-adjusted: Ksh 91,000 (lost 9% purchasing power!)

Dividend Stocks (7% yield + 5% growth, 0% tax):

• Year 10: Ksh 196,000
• Inflation-adjusted: Ksh 145,000 (gained 45% purchasing power!)
• Difference: +Ksh 73,000 vs bank!

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Top 10 Dividend Stocks in Kenya

Our ranking methodology considers:

1. Dividend yield (30%)
2. Consistency (30%) – years of consecutive payments
3. Dividend growth (20%) – increasing over time
4. Company stability (20%) – financial health

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#1: British American Tobacco Kenya (BAT)

Quick Stats:

• Ticker: BAT
• Current Price: Ksh 285
• Annual Dividend: Ksh 26.25 per share
• Dividend Yield: 9.2%
• Payment Frequency: Annual (June)
• Consecutive Years: 15+
• Sector: Consumer Goods (Tobacco)

Why #1?

BAT Kenya earns the top spot among dividend stocks in Kenya with the highest dividend yield on the NSE at 9.2%. This mature, cash-generating business has proven resilient through economic cycles.

Dividend History:

• 2021: Ksh 23.00
• 2022: Ksh 24.00 (+4.3%)
• 2023: Ksh 25.00 (+4.2%)
• 2024: Ksh 25.50 (+2.0%)
• 2025: Ksh 26.25 (+2.9%)

5-Year Growth: +25%

Investment Example:

Investment: Ksh 50,000
Shares: 175 @ Ksh 285
Annual dividend: 175 × Ksh 26.25 = Ksh 4,594
Monthly passive income: Ksh 383
Yield: 9.2%

To Earn Ksh 10,000/Year:

• Need: 381 shares
• Cost: Ksh 108,585

Pros:

• ✅ Highest yield on NSE (9.2%)
• ✅ Very consistent dividend payer
• ✅ Dividends grow annually
• ✅ Stable, cash-generating business
• ✅ Strong market position

Cons:

• ❌ Tobacco industry (ethical concerns for some)
• ❌ Regulatory risks (government pressure)
• ❌ Declining smoking rates globally
• ❌ High share price (Ksh 285)
• ❌ Limited growth potential (mature company)

Best For: Income-focused investors, retirees needing cash flow, those comfortable with tobacco investments.

Next Payment: June 2026

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#2: Safaricom (SCOM)

Quick Stats:

• Ticker: SCOM
• Current Price: Ksh 17.50
• Annual Dividend: Ksh 1.37 per share
• Dividend Yield: 7.8%
• Payment Frequency: Annual (September)
• Consecutive Years: 20+
• Sector: Telecommunications

Why #2?

Safaricom is the most reliable dividend stock in Kenya, having never missed a payment in over 20 years. As Kenya’s largest company with M-Pesa as its cash cow, it offers both reliability and accessibility.

Dividend History:

• 2021: Ksh 1.40
• 2022: Ksh 1.45 (+3.6%)
• 2023: Ksh 1.30 (-10.3% due to Ethiopia costs)
• 2024: Ksh 1.35 (+3.8%)
• 2025: Ksh 1.37 (+1.5%)

5-Year Average: Ksh 1.37

Investment Example:

Investment: Ksh 50,000
Shares: 2,857 @ Ksh 17.50
Annual dividend: 2,857 × Ksh 1.37 = Ksh 3,914
Monthly passive income: Ksh 326
Yield: 7.8%

To Earn Ksh 10,000/Year:

• Need: 7,299 shares
• Cost: Ksh 127,733

Pros:

• ✅ 20+ years of consecutive dividends
• ✅ Easy to understand business
• ✅ Low share price (accessible to beginners)
• ✅ Highest liquidity (easy to buy/sell)
• ✅ M-Pesa provides stable cash flow
• ✅ Most familiar brand in Kenya

Cons:

• ❌ Ethiopia expansion currently losing money
• ❌ Increasing competition from Airtel
• ❌ Regulatory pressure on M-Pesa fees
• ❌ Dividend temporarily cut in 2023
• ❌ Mature domestic market

Best For: First-time dividend investors, those wanting brand familiarity, buy-and-hold strategies.

Next Payment: September 2026

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#3: Equity Bank (EQTY)

Quick Stats:

• Ticker: EQTY
• Current Price: Ksh 42.00
• Annual Dividend: Ksh 3.50 per share
• Dividend Yield: 8.3%
• Payment Frequency: Annual (June)
• Consecutive Years: 12+
• Sector: Banking

Why #3?

Equity Bank combines high yield with impressive dividend growth, making it one of the best dividend stocks in Kenya for those seeking both income and growth.

Dividend History:

• 2021: Ksh 2.50
• 2022: Ksh 3.00 (+20%)
• 2023: Ksh 3.00 (flat)
• 2024: Ksh 3.25 (+8.3%)
• 2025: Ksh 3.50 (+7.7%)

5-Year Growth: +75%!

Investment Example:

Investment: Ksh 50,000
Shares: 1,190 @ Ksh 42
Annual dividend: 1,190 × Ksh 3.50 = Ksh 4,165
Monthly passive income: Ksh 347
Yield: 8.3%

To Earn Ksh 10,000/Year:

• Need: 2,857 shares
• Cost: Ksh 119,994

Pros:

• ✅ High yield (8.3%)
• ✅ Fastest dividend growth (75% in 5 years)
• ✅ Regional expansion (Uganda, Tanzania, Rwanda)
• ✅ Digital banking leader (Equitel, mobile banking)
• ✅ Strong management team

Cons:

• ❌ Banking sector exposed to economic downturns
• ❌ Non-performing loans can affect profits
• ❌ Interest rate cycle sensitivity
• ❌ Currency risk from regional operations

Best For: Growth + income investors, those bullish on African banking, medium-term holders (3-5 years).

Next Payment: June 2026

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#4: East African Breweries Limited (EABL)

Quick Stats:

• Ticker: EABL
• Current Price: Ksh 165
• Annual Dividend: Ksh 9.50 per share
• Dividend Yield: 5.8%
• Payment Frequency: Annual + Interim
• Consecutive Years: 25+
• Sector: Consumer Goods (Alcohol)

Why #4?

EABL stands out among dividend stocks in Kenya with one of the longest dividend track records on the NSE (25+ years) and the unique benefit of paying dividends twice yearly.

Dividend History:

• 2021: Ksh 8.50 (Final: Ksh 5.50, Interim: Ksh 3.00)
• 2022: Ksh 9.00 (Final: Ksh 6.00, Interim: Ksh 3.00)
• 2023: Ksh 7.50 (COVID impact)
• 2024: Ksh 9.00 (recovery)
• 2025: Ksh 9.50 (Final: Ksh 6.50, Interim: Ksh 3.00)

Investment Example:

Investment: Ksh 50,000
Shares: 303 @ Ksh 165
Annual dividend: 303 × Ksh 9.50 = Ksh 2,879
Semi-annual payments: Nov + May
Yield: 5.8%

To Earn Ksh 10,000/Year:

• Need: 1,053 shares
• Cost: Ksh 173,745

Pros:

• ✅ 25+ years dividend history
• ✅ TWO payments per year (interim + final)
• ✅ Defensive consumer staple
• ✅ Strong parent company (Diageo)
• ✅ Market leader with strong brands

Cons:

• ❌ Lower yield than top dividend stocks (5.8%)
• ❌ High share price
• ❌ Regulatory risk (alcohol taxes)
• ❌ Changing consumer preferences

Best For: Ultra-conservative investors, those wanting semi-annual payments, long-term wealth preservation.

Next Payments: November 2026 (interim), May 2027 (final)

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#5: KCB Group

Quick Stats:

• Ticker: KCB
• Current Price: Ksh 28.50
• Annual Dividend: Ksh 2.00 per share
• Dividend Yield: 7.0%
• Payment Frequency: Annual (June)
• Consecutive Years: 10+
• Sector: Banking

Why #5?

KCB Group is East Africa’s largest bank by assets, offering solid dividend stocks in Kenya opportunities with regional growth potential.

Dividend History:

• 2021: Ksh 1.50 (COVID recovery)
• 2022: Ksh 1.75 (+16.7%)
• 2023: Ksh 1.75 (flat)
• 2024: Ksh 1.90 (+8.6%)
• 2025: Ksh 2.00 (+5.3%)

Investment Example:

Investment: Ksh 50,000
Shares: 1,754 @ Ksh 28.50
Annual dividend: 1,754 × Ksh 2.00 = Ksh 3,508
Monthly passive income: Ksh 292
Yield: 7.0%

Pros:

• ✅ Regional giant (6 East African countries)
• ✅ Digital innovation (KCB M-Pesa)
• ✅ Acquisitions driving growth
• ✅ Good yield (7%)
• ✅ Lower entry price than Equity

Cons:

• ❌ Less consistent than Equity Bank
• ❌ Integration risks from acquisitions
• ❌ NPL exposure in some markets

Best For: Banking sector believers, regional growth seekers, medium-term investors.

Next Payment: June 2026

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#6: Co-operative Bank (COOP)

Quick Stats:

• Ticker: COOP
• Current Price: Ksh 13.20
• Annual Dividend: Ksh 0.90 per share
• Dividend Yield: 6.8%
• Payment Frequency: Annual (June)
• Consecutive Years: 8+
• Sector: Banking

Why #6?

Co-op Bank offers the most accessible entry point among major dividend stocks in Kenya with the lowest share price.

Dividend History:

• 2021: Ksh 0.75
• 2022: Ksh 0.80 (+6.7%)
• 2023: Ksh 0.85 (+6.25%)
• 2024: Ksh 0.88 (+3.5%)
• 2025: Ksh 0.90 (+2.3%)

Investment Example:

Investment: Ksh 50,000
Shares: 3,788 @ Ksh 13.20
Annual dividend: 3,788 × Ksh 0.90 = Ksh 3,409
Yield: 6.8%

Pros:

• ✅ Most affordable entry (Ksh 13.20/share)
• ✅ Can buy many shares with little money
• ✅ Growing dividend
• ✅ Stable co-operative banking model

Cons:

• ❌ Lower yield than top banks
• ❌ Less aggressive growth strategy
• ❌ Smaller international presence

Best For: Beginners with small budgets, conservative investors, co-operative banking supporters.

Next Payment: June 2026

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#7: Bamburi Cement

Quick Stats:

• Ticker: BMBU
• Current Price: Ksh 35.00
• Annual Dividend: Ksh 2.00 per share
• Dividend Yield: 5.7%
• Payment Frequency: Annual (June)
• Consecutive Years: Inconsistent
• Sector: Construction Materials

Warning: Bamburi suspended dividends in 2022, making it higher risk among dividend stocks in Kenya.

Dividend History:

• 2021: Ksh 2.50
• 2022: Ksh 0.00 (SUSPENDED)
• 2023: Ksh 1.00 (resumed)
• 2024: Ksh 1.50 (+50%)
• 2025: Ksh 2.00 (+33%)

Pros:

• ✅ Construction boom beneficiary
• ✅ Recovering dividend
• ✅ Infrastructure projects driving demand

Cons:

• ❌ Dividend cut in 2022 (major red flag)
• ❌ Cyclical business
• ❌ Chinese competition
• ❌ High energy costs

Best For: Risk-tolerant investors, construction sector bulls. NOT recommended for conservative income seekers.

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#8: Standard Chartered Bank Kenya

Quick Stats:

• Ticker: SCBK
• Current Price: Ksh 180
• Annual Dividend: Ksh 10.00 per share
• Dividend Yield: 5.6%
• Payment Frequency: Annual (May)
• Consecutive Years: 20+
• Sector: Banking

Dividend History:

• 2021-2025: Ksh 10.00 (flat for 5 years)
• Trend: Stable but no growth

Pros:

• ✅ 20+ years of dividends
• ✅ Foreign parent backing (stability)
• ✅ Never missed payment
• ✅ Premium client base

Cons:

• ❌ Zero dividend growth
• ❌ Very high share price (Ksh 180)
• ❌ Limited upside potential

Best For: Ultra-conservative investors wanting international bank backing.

Next Payment: May 2026

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#9: Diamond Trust Bank (DTB)

Quick Stats:

• Ticker: DTB
• Current Price: Ksh 68.00
• Annual Dividend: Ksh 3.50 per share
• Dividend Yield: 5.1%
• Payment Frequency: Annual (June)
• Consecutive Years: 10+

Investment Example:

Investment: Ksh 50,000
Shares: 735 @ Ksh 68
Annual dividend: 735 × Ksh 3.50 = Ksh 2,573
Yield: 5.1%

Pros:

• ✅ Growing dividend (40% over 5 years)
• ✅ Regional diversification
• ✅ Strong backing (Aga Khan Foundation)

Cons:

• ❌ Lower yield than top banks
• ❌ Less liquidity than big banks

Next Payment: June 2026

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#10: Britam Holdings

Quick Stats:

• Ticker: BRIT
• Current Price: Ksh 6.50
• Annual Dividend: Ksh 0.30 per share
• Dividend Yield: 4.6%
• Consecutive Years: Inconsistent

Warning: Britam suspended dividends for 2 years (2021-2022), making it the riskiest among our top 10 dividend stocks in Kenya.

Pros:

• ✅ Very cheap shares (Ksh 6.50)
• ✅ Diversified financial services
• ✅ Recovering dividend

Cons:

• ❌ Dividend suspended 2021-2022
• ❌ Lowest yield in top 10
• ❌ Insurance sector challenges

Best For: Speculative investors only. NOT recommended for income-dependent retirees.

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Complete Dividend Comparison Table

Rank	Company	Ticker	Price	Dividend	Yield	Consistency	Growth	Risk
1	BAT Kenya	BAT	Ksh 285	Ksh 26.25	9.2%	⭐⭐⭐⭐⭐	⭐⭐⭐⭐	Medium
2	Safaricom	SCOM	Ksh 17.50	Ksh 1.37	7.8%	⭐⭐⭐⭐⭐	⭐⭐⭐	Low
3	Equity Bank	EQTY	Ksh 42	Ksh 3.50	8.3%	⭐⭐⭐⭐	⭐⭐⭐⭐⭐	Medium
4	EABL	EABL	Ksh 165	Ksh 9.50	5.8%	⭐⭐⭐⭐⭐	⭐⭐⭐	Low
5	KCB Group	KCB	Ksh 28.50	Ksh 2.00	7.0%	⭐⭐⭐⭐	⭐⭐⭐⭐	Medium
6	Co-op Bank	COOP	Ksh 13.20	Ksh 0.90	6.8%	⭐⭐⭐⭐	⭐⭐⭐	Medium
7	Bamburi	BMBU	Ksh 35	Ksh 2.00	5.7%	⭐⭐	⭐⭐	High
8	StanChart	SCBK	Ksh 180	Ksh 10.00	5.6%	⭐⭐⭐⭐⭐	⭐	Low
9	DTB	DTB	Ksh 68	Ksh 3.50	5.1%	⭐⭐⭐⭐	⭐⭐⭐	Medium
10	Britam	BRIT	Ksh 6.50	Ksh 0.30	4.6%	⭐⭐	⭐⭐	High

Average Top 10 Yield: 6.6%

Best for Different Goals:

• 🏆 Highest Yield: BAT (9.2%)
• 🛡️ Most Reliable: Safaricom (20+ years)
• 📈 Best Growth: Equity Bank (75% increase)
• 💰 Lowest Entry: Co-op Bank (Ksh 13.20)
• ⚖️ Best Balance: Equity Bank

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How to Build a Dividend Portfolio

Portfolio Strategy #1: Conservative (Low Risk)

Ksh 100,000 Portfolio:

40% Safaricom (Ksh 40,000) = 2,286 shares → Ksh 3,132/year
30% EABL (Ksh 30,000) = 182 shares → Ksh 1,729/year
20% StanChart (Ksh 20,000) = 111 shares → Ksh 1,110/year
10% Equity Bank (Ksh 10,000) = 238 shares → Ksh 833/year

Total Annual Dividends: Ksh 6,804
Average Yield: 6.8%
Risk Level: Low

Portfolio Strategy #2: Balanced (Medium Risk)

Ksh 100,000 Portfolio:

30% Equity Bank (Ksh 30,000) → Ksh 2,499/year
25% Safaricom (Ksh 25,000) → Ksh 1,958/year
25% BAT (Ksh 25,000) → Ksh 2,310/year
20% KCB (Ksh 20,000) → Ksh 1,404/year

Total Annual Dividends: Ksh 8,171
Average Yield: 8.2%
Risk Level: Medium

Portfolio Strategy #3: Aggressive Income (Higher Risk)

Ksh 100,000 Portfolio:

50% BAT (Ksh 50,000) → Ksh 4,594/year
30% Equity Bank (Ksh 30,000) → Ksh 2,499/year
20% KCB (Ksh 20,000) → Ksh 1,404/year

Total Annual Dividends: Ksh 8,497
Average Yield: 8.5%
Risk Level: Medium-High

Dollar-Cost Averaging Strategy

Monthly Investment: Ksh 5,000 for 12 Months

Instead of investing Ksh 60,000 at once, spread it over a year:

• Month 1: Safaricom
• Month 2: Equity Bank
• Month 3: Safaricom
• Month 4: KCB
• Month 5: Equity Bank
• Month 6: BAT
• (Continue rotating)

After 12 Months:

• Total Invested: Ksh 60,000
• Annual Dividends: ~Ksh 4,200
• Monthly Passive Income: Ksh 350
• Yield: 7.0%

Keep going:

• Year 2: Ksh 8,400/year in dividends
• Year 5: Ksh 21,000/year in dividends
• Year 10: Ksh 42,000+/year in dividends!

Dividend Reinvestment Strategy (DRIP)

The secret to building wealth with dividend stocks in Kenya is reinvesting your dividends.

Example: Ksh 100,000 Over 10 Years

With Reinvestment:

• Year 1: Ksh 107,000 (reinvest Ksh 7,000 dividend)
• Year 5: Ksh 140,255
• Year 10: Ksh 196,715

Without Reinvestment:

• Year 10: Ksh 170,000

Difference: Ksh 26,715 extra from compounding!

How Much to Invest for Different Income Goals

To Earn Ksh 1,000/Month (Ksh 12,000/Year):

• At 7% yield
• Need: Ksh 171,429 invested

To Earn Ksh 5,000/Month (Ksh 60,000/Year):

• At 7% yield
• Need: Ksh 857,143 invested

To Earn Ksh 10,000/Month (Ksh 120,000/Year):

• At 7% yield
• Need: Ksh 1,714,286 invested

Realistic Path: Start investing Ksh 5,000/month:

• Year 1: Ksh 350/month passive income
• Year 5: Ksh 2,100/month passive income
• Year 10: Ksh 5,000/month passive income
• Year 20: Ksh 16,000/month passive income

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How to Buy Dividend Stocks in Kenya

Method 1: Mali App (Recommended for Beginners)

Step-by-Step:

1. Download Mali app from Google Play or App Store
2. Sign up and verify ID (15 minutes)
3. Deposit via M-Pesa (Paybill: 558899, Min Ksh 500)
4. Search for stock (Safaricom, Equity Bank, etc.)
5. Buy shares
6. Dividends automatically paid to M-Pesa

Pros: Fast, M-Pesa integration, easy Cons: 1.5% fee per trade Best For: Beginners, investments under Ksh 100,000

Method 2: Hisa App

Step-by-Step:

1. Download Hisa app
2. Sign up and verify (15 minutes)
3. Deposit via M-Pesa (Paybill: 400222, Min Ksh 100)
4. Buy NSE 20 Index Fund (includes top dividend stocks)

Pros: Lower minimum (Ksh 100), also offers US stocks Cons: Currently only index funds for NSE Best For:Diversification seekers

Method 3: Traditional Broker

Top Brokers:

• Genghis Capital (Min: Ksh 10,000)
• Apex Africa Capital (Min: Ksh 10,000)
• Faida Investment Bank (Min: Ksh 5,000)

Process:

1. Open CDS account (2-5 days)
2. Submit documents
3. Transfer funds
4. Place order via phone/email
5. Receive shares in T+3 days

Best For: Large amounts (Ksh 100,000+), those wanting personal advice

Quick Start: For 90% of readers, use Mali App. It’s the fastest way to start earning dividends from Kenyan stocks.

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2026 Dividend Payment Calendar

Month	Expected Payments
May	EABL (Final), StanChart
June	Equity Bank, KCB, Co-op, Bamburi, DTB, Britam, BAT
September	Safaricom (biggest payout)
November	EABL (Interim)

Critical Date: Ex-Dividend Date

This is the last day to buy shares to qualify for the dividend.

Example – Safaricom 2026:

• AGM: July 25 (Declaration)
• Ex-Dividend: September 1
• Record Date: September 3
• Payment: September 28

Important: Buy shares by August 31 to receive September dividend!

Pro Tip: Invest in stocks with different payment months for more frequent income:

• June: Equity Bank dividend
• September: Safaricom dividend
• November: EABL interim

Result: Quarterly dividend income!

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Tax Implications of Dividend Stocks in Kenya

Good News: Dividends Are Tax-Free! 🎉

For Individual Investors:

• Dividend tax rate: 0%
• Capital gains tax: 0%
• You keep every shilling!

Example:

Dividend received: Ksh 10,000
Tax withheld: Ksh 0
You get: Ksh 10,000

Compare to:
Bank interest: Ksh 10,000 → 15% tax → You get Ksh 8,500
Savings with dividend stocks: Ksh 1,500!

Other Taxes When Investing

When Buying Shares:

• Brokerage: 1.5-2.5% (fee, not tax)
• NSE fee: 0.12%
• CDS settlement: 0.04%
• Total: ~1.66-2.66%

When Selling Shares:

• Same fees as buying
• No capital gains tax on NSE shares!

Record Keeping

Even though dividends from Kenyan stocks are tax-free, keep records:

• Contract notes (buy/sell confirmations)
• Dividend payment slips
• Annual statements
• For potential KRA inquiries

Dividend stocks in Kenya = Most tax-efficient investment available!

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Risks & Warnings

Dividend Cut Risk

What It Is: Company reduces or eliminates dividend payment

Recent Examples:

• Bamburi Cement: Suspended 2022
• Britam: Suspended 2021-2022

Warning Signs:

• ❌ Declining profits for 2+ consecutive years
• ❌ High debt levels
• ❌ Payout ratio over 80%
• ❌ Management warnings

Protection:

• ✅ Diversify across 5-10 stocks
• ✅ Check annual reports regularly
• ✅ Monitor payout ratios
• ✅ Don’t rely on one stock for income

Market Risk

Share prices can drop even while paying dividends.

Example:

• Buy Safaricom @ Ksh 20
• Receive dividend: Ksh 1.37
• Price drops to Ksh 15
• Net result: -Ksh 3.63 (despite dividend)

Solution: Hold long-term (5+ years). Dividends provide cushion during price declines.

Concentration Risk

Mistake: Putting 100% in one stock

Better Approach: Diversify across sectors:

• 30% Banking (Equity, KCB, Co-op)
• 25% Telecom (Safaricom)
• 20% Consumer goods (EABL, BAT)
• 15% Other sectors
• 10% Cash/Money market

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Frequently Asked Questions

Q1: Which company pays the highest dividend per share in Kenya?

Answer: British American Tobacco (BAT) pays the highest dividend per share at Ksh 26.25, with a 9.2% yield.

However, absolute dividend amount matters less than yield:

Top 5 by Yield:

1. BAT: 9.2%
2. Equity Bank: 8.3%
3. Safaricom: 7.8%
4. KCB: 7.0%
5. Co-op Bank: 6.8%

Focus on yield, consistency, and growth rather than just the absolute dividend amount.

Q2: What are the 5 best dividend stocks in Kenya?

The 5 best dividend stocks in Kenya for 2026:

1. Equity Bank (EQTY) – Best Overall
   • Price: Ksh 42, Yield: 8.3%
   • Why: High yield + 75% dividend growth
2. Safaricom (SCOM) – Most Reliable
   • Price: Ksh 17.50, Yield: 7.8%
   • Why: 20+ years, never missed payment
3. BAT – Highest Yield
   • Price: Ksh 285, Yield: 9.2%
   • Why: Highest income generation
4. EABL – Most Consistent
   • Price: Ksh 165, Yield: 5.8%
   • Why: 25+ years, pays twice yearly
5. KCB Group – Best Value
   • Price: Ksh 28.50, Yield: 7.0%
   • Why: Regional growth + good yield

Recommended Portfolio (Ksh 50,000):

• 30% Equity Bank: Ksh 1,250/year
• 25% Safaricom: Ksh 979/year
• 20% BAT: Ksh 919/year
• 15% EABL: Ksh 428/year
• 10% KCB: Ksh 350/year

Total: Ksh 3,926/year (7.9% yield)

Q3: Which companies pay dividends monthly in Kenya?

Important: NO NSE companies pay monthly dividends. All Kenyan stocks pay annually or semi-annually.

Payment Frequencies:

• Annual: Safaricom, Equity Bank, KCB, Co-op, BAT, etc. (most common)
• Semi-Annual: EABL (interim + final)

Want Monthly Income? Solutions:

1. Dividend Ladder: Buy stocks paying in different months
   • June: Equity, KCB, Co-op
   • September: Safaricom
   • November: EABL interim
   • May: EABL final
2. Money Market Fund: Etica pays interest daily, compounds monthly, 8-10% returns
3. Budget Strategy: Receive annual dividend, divide by 12, save monthly portion in money market

Truth: For true monthly passive income in Kenya, consider rental property or business income alongside dividend stocks.

Q4: Which shares are best to buy now in Kenya?

Best dividend stocks in Kenya to buy right now (February 2026):

For Income:

1. Equity Bank – Undervalued, 8.3% yield
2. Safaricom – Reliable, 45% below peak
3. BAT – Highest yield at 9.2%

For Growth:

1. Safaricom – Ethiopia potential
2. Equity Bank – Regional expansion
3. KCB – Acquisitions driving scale

Best All-Around Portfolio (Ksh 100,000):

• 35% Equity Bank (Ksh 35,000)
• 30% Safaricom (Ksh 30,000)
• 20% BAT (Ksh 20,000)
• 15% KCB (Ksh 15,000)

Expected: Ksh 7,800+/year dividends (7.8% yield)

Timing: NSE is recovering from 2024 lows. Good time to invest with dollar-cost averaging.

Q5: How much do I need to invest to earn Ksh 10,000 monthly from dividends?

Reality Check: Earning Ksh 10,000/month (Ksh 120,000/year) from dividend stocks in Kenya requires significant capital.

The Math:

• Monthly goal: Ksh 10,000
• Annual needed: Ksh 120,000
• At 7% average yield
• Investment required: Ksh 1,714,286 (1.7 million)

More Realistic Goals:

Investment	Monthly Income	Annual Income
Ksh 100,000	Ksh 583	Ksh 7,000
Ksh 500,000	Ksh 2,917	Ksh 35,000
Ksh 1,000,000	Ksh 5,833	Ksh 70,000

Realistic Path to Ksh 10,000/Month:

Invest Ksh 10,000/month for 10-15 years:

• Year 5: Ksh 2,100/month passive income
• Year 10: Ksh 5,000/month passive income
• Year 15: Ksh 10,000/month achieved!

Better Strategy: Combine dividend stocks with active income until portfolio grows large enough.

Q6: How much is 500 Safaricom shares?

Cost: Ksh 8,895 (including all fees)

Breakdown:

• Shares: 500 × Ksh 17.50 = Ksh 8,750
• Fees (1.66%): Ksh 145
• Total: Ksh 8,895

What You Get:

• 500 Safaricom shares
• Annual dividend: 500 × Ksh 1.37 = Ksh 685/year
• Monthly: Ksh 57
• Yield: 7.8%

5-Year Potential:

• Conservative (5% growth): Ksh 11,165 + Ksh 3,425 dividends = 67% return
• Moderate (10% growth): Ksh 14,090 + dividends = 100% return

How to Buy:

1. Download Mali app
2. Deposit Ksh 9,000
3. Buy 500 Safaricom shares
4. Receive dividends in September 2026

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Conclusion: Start Building Dividend Income Today

You now understand the top 10 dividend stocks in Kenya and how to build passive income through dividends.

Key Takeaways:

✅ Top 3 for Most Investors:

1. Equity Bank (growth + income)
2. Safaricom (reliability)
3. BAT (highest yield)

✅ Average Yield: 6.6% (beats bank savings) ✅ Tax: 0% on dividends ✅ Start: As little as Ksh 500 ✅ Strategy:Diversify, reinvest, hold 10+ years

Your Action Plan

This Week:

1. Review the top 10 dividend stocks
2. Choose 3-5 for your portfolio
3. Decide budget (Ksh 2,000-10,000)

Next Week: 4. Download Mali app 5. Complete registration 6. Make first purchase

Going Forward: 7. Set up monthly investments 8. Track dividend payments 9. Reinvest dividends 10. Build wealth consistently

Long-Term Vision

Start with Ksh 5,000/month:

• Year 1: Ksh 350/month passive income
• Year 5: Ksh 2,100/month passive income
• Year 10: Ksh 5,000/month passive income
• Year 20: Ksh 16,000/month passive income

The journey to financial freedom through dividend stocks in Kenya starts with a single share. Buy it today.

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Last updated: February 2026. Verify current dividend amounts and share prices before investing.

Disclaimer: For informational purposes only, not financial advice. Dividend stocks carry risk including potential dividend cuts and share price volatility. Consult a qualified financial advisor before investing.

Also Read:

How to Buy Safaricom Shares in Kenya 2026: Complete Step-by-Step Guide

Best Investment Apps in Kenya 2026: Hisa vs Ndovu vs Mali – Complete Comparison