What you need to know:
Dividend payment data obtained from Umeme financial results during the 10 year period indicate NSSF earnings, which holds a majority shareholding of 23.2 percent, have been increasing
National Social Security Fund (NSSF) will round off 10 years with a cumulative earning of Shs73.2b in dividends for its Umeme shares.
Dividend payment data obtained from Umeme financial results during the 10 year period indicate NSSF earnings, which holds a majority shareholding of 23.2 percent, have been increasing but experiencing declines in selected reporting periods.
For instance, the Fund earned Shs1.6b in 2012, grow through the period to Shs6.9b in 2015.
The earning have since been growing but experienced a sharp decline in 2020 (Shs3.9b), before rebounding to Shs17.4b during the period ended December 31, 2021. NSSF uses such earnings as a measure of interest payment for its members. It holds more than 373.7 million shares in Umeme, which going by the current price of Shs240 per share, are worth Shs90.9b.
The other top shareholders in Umeme include Allan Gray, which holds 14.82 percent, Kimberlite Frontier Africa Master Fund with 8.9 percent and Utilico Emerging Markets with 8.37 percent. Coronation Global Opportunities Fund has a stake of 7.03 percent while Bnymlb Re has 5.28 percent.
International Finance Corporation has 2.78 percent, Duet Fund (2.45 percent), Investec Asset Management (2.18 percent), Conrad Hilton Foundation (1.93 percent and others – which is majorly comprised of individual shareholders, unit trusts, retirement benefits schemes, insurance companies and investment clubs – hold 22.92 percent.
For the year ended December 2021, Allan Gray will earn Shs11.6b, Kimberlite Frontier (Shs6.6b) while Utilico Shs6.2b. Coronation will earn Shs5.2b, Bnymlb (Shs3.9b), IFC (Shs2.4b), Duet (Shs1.8b), Investec (Shs1.6b) while others will receive (Shs1.4b). Speaking at the 2022 annual general meeting, Mr Selestino Babungi, the Umeme managing director, said the Shs54.1 dividend payout was due to a 13 percent growth in revenue, 33 percent growth in gross profit and a reduction in financing costs.
Earnings from shares