Barclays Kenya's 2014 pretax profit rises 10 pct

(Adds CEO comment, dividend)

NAIROBI, March 6 (Reuters) - Barclays Bank of Kenya said pretax profit rose 10 percent to 12.3 billion shillings ($135.1 million) in 2014, largely due to growth in net interest income and lower costs.

The lender, a unit of Barclays Plc (LSE: BARC.L - news) , said net interest income rose 4 percent to 19.6 billion shillings but its impact was curbed by a drop in non-interest income.

Operating costs fell 6 percent to 14.6 billion shillings, improving the cost-to-income ratio to 52 percent from 53 percent a year earlier.

Its management said it would focus on the small and medium enterprise (SME) segment this year to boost growth.

"We see this as a significant opportunity going forward," Chief Executive Jeremy Awori told an investor briefing.

Barclays Kenya has traditionally focused on retail banking and corporate banking, losing out on the growth of the SME sector in recent years to rivals like KCB.

It raised its total dividend for the year by 43 percent to 1.00 shilling per share. ($1 = 91.2500 Kenyan shillings) (Reporting by Duncan Miriri; Editing by Edith Honan and Gopakumar Warrier)