Government receives 31 billion shillings dividend from NMB

By Noor Shija

Dodom. The shilling 41.48 trillion national budget, which was presented to parliament on Tuesday, received a vital boost yesterday when the government received a shilling 30.7 billion dividend from NMB Plc.

Vice President Philip Mpango, accompanied by Minister of Finance and Planning Mwigulu Nchemba, yesterday received a dummy check bearing the figure of 30.7 billion shillings from the Chairman of the Board of NMB Bank Plc, Edwin Mhede, General Manager Ruth Zaipuna and Chief Financial Officer Juma Kimori.

The money is part of a total of 96.7 billion shillings that NMB Bank Plc shareholders approved to be paid out as dividends at their 22nd annual general meeting (AGM) earlier this month.

Last year, the banking group recorded a record net profit of 290 billion shillings.

The government holds a 31.8% stake in NMB Bank Plc.

Honoring the event, Dr. Mpango expressed his joy at seeing the dividend increase.

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“I am glad to see that you have proposed a higher dividend. When I go to welcome the chairman [from her visit to Oman], that’s one of the things I’m going to let him know. Congratulations,” said Dr Mpango.

Speaking at the event, Chairman of the Board of NMB Bank Plc, Edwin Mhede, thanked the government for the continuation of supportive macroeconomic policies which resulted in a good performance of the banking sector in particular and the financial sector. economy as a whole. “That is why at a time like this last year the government received 21.8 billion shillings in dividends on its shares in NMB Bank Plc. Today it receives 30.7 billion shillings for the same shares. This represents an increase of 40.83%,” he said.

Briefing the Vice Chairman, the Managing Director of NMB Bank Plc, Ruth Zaipuna, said that apart from the 30.7 billion shillings in dividends – which have already been deposited in the account of the Registrar of the Treasury – the bank has also paid a total of 269 billion shillings in various taxes. including income tax, skill development tax, and value added tax, among others.

“NMB Bank Plc will continue to partner with the government in its efforts to improve social and economic development, primarily through investment in the agriculture and trade sectors,” she said, revealing that December 2021, NMB Bank Plc disbursed a total of 4 shillings. 0.3 trillion in loans to farmers, small and medium enterprises and individuals.

In line with the government’s plan to ensure that commercial bank loans to the agricultural sector are secured at affordable interest rates, Ms. Zaipuna told Dr. Mpango that so far, NMB Bank Plc has loaned the full 100 billion of shillings she had set aside for these loans. at an interest rate of 10% and that it has started to release an additional 100 billion shillings for such loans at an interest rate of 9%