The Nairobi Securities Exchange has roared to life as three corporate giants announce bumper interim dividends.

Investors at the Nairobi Securities Exchange (NSE) are counting their gains after East African Breweries PLC (EABL), Kenya Power (KPLC), and Safaricom PLC all posted impressive half-year results, triggering a rally in their share prices. The coordinated surge of these blue-chip counters has injected a fresh dose of optimism into a market that has struggled with foreign capital flight and macroeconomic headwinds.

The Dividend windfall

EABL led the charge, reporting a stunning 37.6% jump in net earnings to Ksh11.16 billion. The brewer rewarded its shareholders with a juicy interim dividend of Ksh4.00 per share, a 60% increase from the previous year. The news sent the stock climbing as investors rushed to lock in the payout. "This performance reflects a broad-based improvement across our operations," EABL management stated, citing volume growth and premiumization strategies.

Not to be outdone, Safaricom announced a 54.5% hike in its interim dividend to Ksh0.85 per share. The telco’s net profit soared to Ksh42.8 billion, driven by the relentless growth of M-PESA and mobile data. Meanwhile, Kenya Power, often the laggard, surprised the market with a Ksh10.4 billion profit and an interim dividend of Ksh0.30, signaling a potential turnaround for the utility monopoly.

• EABL: Net profit up 38%; Interim Dividend Ksh4.00; Stock rally driven by volume recovery.
• Safaricom: Net profit up 52%; Interim Dividend Ksh0.85; M-PESA revenue remains the crown jewel.
• Kenya Power: Net profit Ksh10.4B; Interim Dividend Ksh0.30; Efficiency gains and higher electricity sales cited.

Market Sentiment Shift

The simultaneous strong performance of these three market movers is a bellwether for the Kenyan economy. It suggests that despite the high cost of doing business and inflationary pressures, corporate Kenya is finding ways to squeeze out efficiencies and grow earnings. The dividends are particularly welcome for retail investors who have seen the value of their portfolios erode over the last two years.

Analysts predict that this bullish momentum could sustain the NSE in the short term, attracting domestic institutional investors back to equities. However, the long-term outlook remains tethered to the country's broader economic health and currency stability.

For now, the bulls are in charge at Westlands. As one analyst put it, "Cash is king, and these companies are proving they have plenty of it to share."