State gets Sh38bn dividend boon as economy picks up
Government earnings from public investments surpassed the target for fiscal 2020/2021 by Sh5.03 billion, the latest audited data shows.
Government earnings from public investments surpassed the target for fiscal 2020/2021 by Sh5.03 billion, the latest audited data shows. This is a higher level of dividend payouts than the National Treasury had anticipated.
The latest exchequer report shows the State netted Sh37.6 billion income from dividends and other profits, 15 per cent higher than a revised goal of Sh32.56 billion. The Sh37.6 billion is higher than the Sh36.24 billion preliminary dividend earnings that the Treasury published last October.
The National Treasury had initially set the dividend collection target at a lower Sh28.59 billion, which means it realised an upward variation of Sh9 billion or 31.51 per cent based on the initial goal. This amount includes cash wired by parastatals, State agencies as well as quoted and private firms where taxpayers have a stake.
“The increase is mainly attributable to Kenya Ports Authority (KPA), Kenya Pipeline Company (KPC), and Kenya Electricity Generating Company (KenGen) where majority paid a special dividend to the National Treasury,” the National Treasury said.
Dividend list
“This was an accrued amount that was supposed to be paid in 2019/2020 financial year after review and rationalisation of State corporations budget for 2019/2020 financial year, where some entities were found with resources not required for immediate use and the funds were identified and remitted to the national exchequer.”
The dividend list for the 2020/2021 financial year shows that KPA paid Sh4.95 billion to the National Treasury, KenGen (Sh1.15 billion), KPC (Sh2.7 billion), Kenya Reinsurance Company (Sh168 million), Safaricom (Sh25.94 billion), and KCB (Sh635 million).
Others were National Housing Corporation (Sh13.55 million), Africa Trade Insurance Agency (Sh84.64million), De La Rue EPZ (Sh58.12 million), Housing Finance (Sh4.18 million), Kenya Power and Lighting Company (Sh783,239), Nairobi Securities Exchange (Sh700,000), Stanbic Holding Limited (Sh39.6 million), Industrial and Commercial Development Corporation (Sh400,408).
Central Bank also paid out a Sh7.5 billion dividend to the State for the financial year 2020/2021.
The Treasury owns a 35 percent stake, or about 14. 02 billion shares, in Safaricom, which translated to a huge windfall.
Additional sizeable earnings came from KPC where the State owns a 100 percent stake with 18.17 million shares.
