[/quote= Ericsson/]

They might substitute with a bonus share issue

Yep Bonus most likely

Best case:- 1:10
Worst case:-. 1:20
Base case:- Btw 1:10 & 1:20


http://www.wazua.co.ke/f...spx?g=posts&t=38084

A bonus share issue of 1:10 would perfectly compensate shareholders a dividend of ksh.3.50 per share based on the current prevailing share price.

Assume you have 10,000 KCB shares.
You are to get a dividend of ksh.3.50 per share.
The total dividend you are to get is (35,00-1750)=33250.

But instead KCB decides to give you a bonus share issue of 1:10.
Means you will get an additional 1,000 shares.Current share price of KCB is 37.
Adjusting the share price to cater for the dividends means you will get 1,000 shares worth ksh.33.3 per share.
Total value of shares allocated is ksh.33,300.

The ksh.33,300 is equal to the dividend you would have received.

So you start with 37,000 of value. And end up with 37,000 of value. And zero cash.

Bonuses are just slicing the same cake into more pieces. 11 instead of 10. Same size cake.

Yes but often the shares go ex-div on the day of the AGM. Not always but often. The AGM may provide additional (+ or -) insights that may "maintain" the share price.

I prefer the cash since it's cheaper for me. Also it's defined vs varying prices on the sale of shares.

I have to sell shares [commissions] vs getting a cash dividend [W/Tax].

https://www.bloomberg.com/news/articles/2020-11-12/biggest-kenyan-bank-pauses-ethiopian-entry-on-virus-uncertainty

Biggest Kenyan Bank Pauses Ethiopian Entry on Virus Uncertainty

Kenya’s biggest bank put on hold plans to expand into Ethiopia where fighting between the federal government and a dissident region has resulted in hundreds of deaths and caused thousands to flee.

KCB Group Ltd. is waiting for the uncertainty caused by the coronavirus to settle before pursuing an entry into its northerly neighbor, Chief Executive Officer Joshua Oigara said. The Nairobi-based lender, which was looking to partner with an Ethiopian bank, will instead focus on the six markets it currently operates in, he said.

“The conversations for Ethiopia are not continuing for now,” the CEO said in an interview, without referring to the incursion. “It will have to happen once we are clear about how the pandemic goes.”
The lender’s profit in the nine months through September declined 43% compared with a year-earlier after provisions surged amid the economic fallout of the coronavirus. Going into next year, the company is projecting some recovery in East Africa as the countries adapt to living with Covid-19. KCB will still be on the look out for opportunities for its existing businesses.

“We remain very optimistic in markets like Rwanda, where we have always been very interested in increasing our presence,” Oigara said. “We are very much interested in enhancing capability in Tanzania, and obviously also in Uganda,” he said. “So we are on standby.”

The company will need to cut staff, which accounts for almost 45% of total expenses, the CEO said, without providing more details. It will further reduce costs such as leases, meals and travel by December.

“We are also looking very strongly at our own technology investments as we migrate transactions in those areas,” Oigara said. “That will also reduce any additional staff costs.”