Centum Faces Investor Scrutiny Over Pending Dividend Payout Ahead of Half-Year Results

Nairobi, November 6, 2025 – Centum Investment Company Plc has come under fire from some investors for proceeding with its scheduled announcement of half-year results for the financial year ending March 2026, even as the payment of dividends declared for the previous fiscal year remains outstanding.

The criticism surfaced on social media platform X, where an investor questioned the company’s priorities, pointing out that dividends from the fiscal year ended March 2025 (FY25) have yet to be disbursed despite the impending release of interim results.

The post, which garnered significant engagement, highlighted frustration over what some perceive as a disconnect between the firm’s reporting timeline and its obligations to shareholders.

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Centum, a diversified investment holding company listed on the Nairobi Securities Exchange (NSE) and Uganda Securities Exchange (USE), announced its full-year results for FY25 in July 2025, reporting a sharp 69 percent decline in consolidated profit after tax to Sh813 million from Sh2.6 billion the previous year.

The drop was attributed primarily to reduced fair value gains on investment properties and a deferred tax charge stemming from asset reclassifications and an increased land tax rate.

Despite the profit slump, the board proposed a final dividend of Sh0.32 per share, matching the payout for FY24 and totaling Sh210 million.

The ex-dividend date was set for October 9, 2025, with payment scheduled for December 19, 2025.

As of now, with the current date being early November, shareholders are still awaiting the disbursement.

The company’s half-year results for the period ended September 30, 2025 – representing the first half of FY26 – are expected to be released in the coming weeks, in line with NSE reporting requirements and the firm’s investor calendar.

Centum’s financial year runs from April 1 to March 31, and interim results are typically announced by late November or early December to provide timely updates to the market.

Analysts note that while the pending dividend payment is within the announced timeline, the timing has raised eyebrows amid Centum’s ongoing strategic shifts under its Centum 5.0 plan, which focuses on cash-generating assets and debt reduction.

The firm successfully trimmed its consolidated borrowings to Sh17.9 billion in FY25, with parent-level debt dropping 65 percent to Sh690 million, fully covered by cash and securities.

Finance costs fell 32 percent, and the company reported an 18.5 percent return on its Sh1.9 billion marketable securities portfolio.

However, challenges persist in key segments.

Real estate, which accounts for nearly half of Centum’s Sh61.5 billion investment portfolio, saw operating profit fall 59 percent to Sh1.5 billion in FY25, driven by halved revaluation gains and a 30 percent drop in gross profit from residential sales.

The Two Rivers Special Economic Zone’s profit plummeted 97 percent to Sh88 million, though losses at Two Rivers Development narrowed significantly.

Other areas showed resilience: The financial services segment swung to a Sh90 million profit from a prior loss, while investment operations rebounded to Sh1.18 billion in profit, boosted by asset monetization including the divestment of Sidian Bank.

Total comprehensive income rose 28 percent to Sh3.26 billion, with shareholder equity growing 9 percent to Sh43.2 billion, lifting net asset value per share to Sh66.93.

Centum’s share price has risen 37 percent over the past year to around Sh12, though it trades at an 81 percent discount to book value, reflecting market caution.

A share buyback program, intended to repurchase up to 10 percent of shares, has acquired only 0.23 percent to date at an average of Sh9.03 per share.

The company did not immediately respond to requests for comment on the investor criticism.

Market watchers suggest that while the dividend delay is procedural, it underscores broader concerns about payout consistency, especially given the reduced dividends in recent years – down from Sh0.60 in FY23 to Sh0.32 in FY24 and FY25.

As Centum prepares to unveil its HY26 performance, stakeholders will be watching closely for signs of recovery in core segments and any updates on capital allocation strategies.

The firm has distributed Sh5.3 billion in dividends since 2009 without raising new equity, but sustained profitability will be key to restoring full investor confidence.