UPDATE 1-Kenya National Bank 9-mth pretax profit up 5.7 pct

* Net interest income 2.41 bln shillings vs 2.32 bln

* Pretax profit up 5.7 pct vs 11 pct H1 increase

(Adds detail, background)

NAIROBI, Nov 6 (Reuters) - Kenya's National Bank (NBK.NR) said on Friday pretax profit in the first nine months of the year rose to 1.43 billion shillings ($19 million) while net interest income edged higher to 2.41 billion shillings.

Kenya's 10th biggest bank by assets, which is slated for privatisation, said in a statement its directors did not recommend the payment of an dividend.

The bank said in August it expected to start paying dividends in 2010, once it has cleared earlier losses.

It said nine-month total interest income climbed to 3.28 billion shillings from 2.93 billion in the same period of 2008. Earnings per share rose to 3.59 shillings from 3.19 shillings.

At 0745 GMT, the bank's shares were unchanged from Thursday's close at 32.5 shillings.

Most Kenyan banks to unveil nine-month results so far have reported at least some increase in pretax profit, despite the difficult economic backdrop after the global economic slowdown.

The government, which has a 22.5 percent direct stake in the bank and 48.05 percent through the state pension fund, has engaged a consultant to determine the best mode of selling the shares.

Rival Equity Bank (EQTY.NR) has expressed an interest in acquiring a controlling stake when the terms of its sale are unveiled.

National Bank was founded as a bank for the government and its agencies. It provides banking services to several important government agencies including the Kenya Revenue Authority. (Reporting by Wangui Kanina; Editing by David Clarke and David Holmes) ($1=75.15 Kenyan Shilling)