1. The Math: What’s Hitting Your Account?
For many Kenyans, Safaricom was their first ever investment. If you bought in during the 2008 IPO or picked up shares during the recent dips, here is how the KES 0.85 interim dividend translates to your M-PESA or bank account:
Gross Payout: Multiply your number of shares by 0.85.
The Tax Factor: For residents, dividend income is subject to a 5% Withholding Tax (WHT).
Net Payout: You will effectively receive KES 0.8075 per share after tax.
Calculation Example: If you own 10,000 shares:
Gross: KES 8,500
Tax (5%): KES 425
Your Net Pocket: KES 8,075
2. The “Wealth Effect” on the NSE
The dividend announcement acted like rocket fuel for the Nairobi Securities Exchange. On Wednesday and Thursday, investor wealth surged by over KES 63 billion in a single session.
The $10 Billion Milestone: For a brief moment on February 5, Safaricom’s market cap crossed the US$ 10.09 billion mark. It is the only company in East Africa to hit this “decacorn” status twice.
Price Rally: Shares touched an intraday high of KES 32.50, a price point not seen since August 2022.
The Rotation: We are seeing a “rotation” of capital. Investors are selling off fixed-income bonds (which were the darling of 2024/25) and moving back into “Blue Chip” equities like Safaricom, Equity Group, and EABL.
3. Don’t Miss Out: The “Book Closure” Deadline
The most important date for any retail investor right now is February 25, 2026.
Eligibility: To get the KES 0.85, you must be a registered owner of the shares by the close of business on that day.
The Strategy: If you’re looking to “top up” your portfolio, you need to buy before the Ex-Dividend date (February 26). After that date, the share price usually drops slightly to reflect the fact that the dividend has already been “assigned” to the previous owner.
