Kenya: Barclays Gets Approval to Split Share

Nairobi — The Capital Markets Authority has approved Barclays Bank of Kenya's application to split its share into four, which was also approved by shareholders on Friday.

The split will affect shareholders at the close of business on May 30, 2011 and the register will be adjusted proportionally to reflect the split of four new shares for one of the existing ordinary shares.

This is the second share split by the bank in five years, with the last one done in 2006, when the bank's share was split into five.

The firm's share closed trading on the Nairobi Stock Exchange on Friday at Sh69.

Chairman, Francis Okomo-Okello, told the bank's annual general meeting in Nairobi yesterday, that the CMA had approved the share split. He added that the rationale for the split was to make the bank's shares acceptable and marketable.

"The aim is to facilitate increased trading and liquidity of this share," Mr Okomo-Okello told shareholders.

"The split will make the share more affordable and make more people participate in the company."

The bank had earlier said the price at which shares will begin trading after the split would be determined by the effect of the split. A divide entails reducing market prices of the stock at a proportion almost equivalent to the share split ratio, which is four to one.

Final dividend

Shareholders also approved a final dividend for the year of Sh4.70 a share, up from Sh2 a share paid in 2009. One interim dividend of 75 cents a share was paid in 2010, up from 50 cents paid in 2009.

Mr Mohamed said the bank anticipates the market place to become increasingly competitive in the coming years. He added that the bank was aware of the impact this is likely to have on its performance.

"We, therefore, will continue to work hard to deliver on the promises we make, particularly to our customers and shareholders with a focus being on how we execute our 2011 priorities," Mr Mohamed told shareholders.