8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


_________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): December 5, 2008



                       KENTUCKY BANCSHARES, INC.
          (Exact Name of Registrant as specified in Charter)


   Kentucky                   33-96358              61-0993464
 (State or other            (Commission            (IRS Employer
  jurisdiction of           File Number)        Identification No.)
  incorporation)


P.O. Box 157, Paris, Kentucky                          40362-0157
(Address of principal executive offices)               (Zip code)


(859)987-1795
(Registrant's telephone number, including area code)

N/A
(Former name or former address, if changed since last report.)


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:

?  Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)

?  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)

?  Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))

?  Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
INFORMATION TO BE INCLUDED IN THE REPORT

  Item 8.01. Other Events

      On December 5, 2008 the Registrant announced its quarterly cash
dividend to shareholders.  The dividend will be 28 cents per share, the
same as the previous three quarters.  This payment will be made
December 31, 2008, to shareholders of record December 19, 2008.


  Item 9.01.  Financial Statements and Exhibits

Exhibit 99.1 - Press release dated December 5, 2008, announcing
the dividend for the fourth quarter of 2008.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.

KENTUCKY BANCSHARES, INC.



Date: December 5, 2008              By      /s/ Gregory J. Dawson___
         Gregory J. Dawson
         Chief Financial Officer

EX-99

Exhibit 99.1

December 5, 2008

Press Release

Kentucky Bank Parent Announces Dividend

Paris, Kentucky - Kentucky Bancshares Inc., parent holding company for
Kentucky Bank, announced today a quarterly dividend to shareholders.
The payout will be 28 cents per share. This will bring dividends for
the full year to $1.12, up from $1.08 in 2007.

The current payment will be made December 31 to shareholders of record
at the close of business on December 19, 2008.

Kentucky Bancshares President Louis Prichard made the announcement.
"We are very pleased to return a portion of our earnings to
shareholders in the form of dividends.  This stream of income is an
important return on their investment.  These are challenging times for
all financial institutions.  Our focus remains on loan quality,
maintaining a strong balance sheet and attracting new customers for
future growth."

Kentucky Bank was founded in 1851 and is headquartered in Paris and
also has offices in Cynthiana, Georgetown, Morehead, Nicholasville,
North Middletown, Sandy Hook, Versailles, Wilmore, and Winchester.  It
ranks 15th in size among the state's 181 banks.  Shares of the parent
holding company trade over the counter and are reported on the OTC
Bulletin Board.  The symbol is KTYB.OB.



Contact:  Gregory J. Dawson
          Chief Financial Officer