A bonus share issue – every shareholder would get three free shares for every share he already held. In a stock split, the company divides existing outstanding shares into multiple smaller shares. A stock split would split that Sh100 note into five Sh20 coins. I argued with stock market pundits about whether Kenya Re issued bonus shares or did a stock split. Well, Kenya Re issued bonus shares – it capitalised Sh5 billion of its retained earnings for the bonus, share price responded as though there was a split.

Source: Daily Nation November 23, 2019 09:00 UTC