Kenya Commercial Bank Group has announced a 48% increase in dividends to its share holders for 2012/2013. At the Bank Group's Annual General Meeting group at the KICC Chairman Peter Muthoka announced that shareholders will now get a dividend of Shs. 1.85 per ordinary share as compared to last years Shs. 1.25 per share.

KCB Group announced a dividend pay out of Kshs. 5.5 billion representing 49% of the company's profits for last year. The Banks share traded fairly at the Nairobi Securities Exchange for between Shs. 16.85 and Shs. 21.75 through 2011.

The largest bank in the regional, KCB operates branches in Kenya, Uganda, Rwanda, South Sudan and Tanzania. The bank’s profit after tax increased by 36.77% from KES 1.77 billion as of March 2011 to KES 2.43 billion as of the end of March 2012.

Group chief executive Martin Oduor-Otieno announced at the AGM that the bank would be dropping its base rates from 24% to 22%, an announcement that did not go down well with a section of the public who have been hoping f0r much lower interest rates, as expressed in the tweet below.

With all the mega profit @KCBGroup you just reduce interest rate to 22%.... It is real commercial..... Maximise profits

— Daniel (@Danalphie) May 18, 2012

The bank's mortgage division S&L will also be dropping the rates on mortgages to 19%. The chief executive said the new rates will be effective from 1st of June.