BOC Kenya has rewarded investors with a 60 per cent increase in its interim dividend to Sh4 per share despite lower half-year earnings, extending a run of rising payouts into a third consecutive year.
The industrial and medical gas manufacturer reported a 39.8 per cent decline in net profit to Sh100.37 million for the six months ended June 2026. However, it has raised the interim dividend from Sh2.50 in a similar period last year.
The dividend distribution, totalling Sh78.1 million, is equivalent to 77.8 per cent of the half-year net profit and maintains BOC among the generous dividend payers at the Nairobi Securities Exchange.
Over the six years to 2024, the firm distributed between 59.6 per cent and 79.8 per cent of its annual net income as dividends. The firm distributed 80.7 per cent of its Sh311.02 million net earnings for 2025 as dividends.
The latest interim dividend, which will be paid on or about October 19, positions BOC investors for a higher dividend for the third straight year. The per-share payout for 2025 results was Sh12.85, up from Sh8.65 in the previous year and Sh6.05 in 2023 and 2022.
BOC is 65.38 per cent owned by BOC Holdings (UK), followed by Kiuna Ngugi with a stake of 17.91 per cent, leaving 16.91 per cent to other individual and corporate shareholders.
The half-year ended June 2026 saw BOC’s revenue drop by 17.1 per cent to Sh600 million from Sh724.9 million, leading to a decline in the bottom line alongside a rise in distribution costs.
The firm said 2025 had strong growth in customer engineering projects that drove up demand for medical and industrial gases. This was not sustained during the first half of this year, resulting in reduced sales.
“Revenue decreased by 17 percent compared to the corresponding period in the prior year, primarily due to the absence of once-off customer engineering projects that contributed significantly to revenue during the previous period,” said the firm in a note accompanying the financial results.
In addition, the firm said distribution, selling, and administrative expenses rose 17 per cent during the period, mainly driven by inflationary pressures and higher fuel and energy costs.
BOC board says the company continues to strengthen its leadership in medical gases while also expanding its industrial gases footprint by engaging the manufacturing, services, agricultural, and fabrication industries.
“This strategic focus is expected to enhance operational resilience, broaden market reach and position the business for sustainable long-term growth and profitability,” said the firm.
