By Johannah Nantongo
Equity Group shareholders have approved a record dividend payout of KShs 21.7 billion during the lender’s 22nd Annual General Meeting (AGM), marking a 35.5% increase compared to the previous year’s distribution.
The approved dividend amounts to KShs 5.75 per share, up from KShs 4.25 per share paid for the prior financial year, when the bank distributed KShs 16.04 billion to shareholders.
During the meeting, investors also gave the green light for the group to broaden its footprint in the insurance industry across East and Central Africa through Equity Group Insurance Holdings Limited, subject to approval by relevant regulators.
The expansion plan includes the creation of a microinsurance company in Kenya with an initial capital of KShs 192 million. In the Democratic Republic of Congo (DRC), Equity plans to establish a life insurance company with USD 12 million in capital and a general insurance company backed by USD 13.37 million.
The move is expected to diversify the group’s income streams beyond banking while tapping into growing demand for accessible insurance products across the region. Analysts say Equity’s large customer base provides a strong platform to scale insurance services in underserved markets.
Equity Group Chairman Isaac Macharia said the decisions taken at the AGM demonstrate shareholders’ confidence in the group’s long-term strategy, which is anchored on its Africa Recovery and Resilience Plan.
He noted that the board remains focused on maintaining sound corporate governance, responsible management, and creating sustainable value for shareholders.
Group Managing Director and CEO James Mwangi said the insurance ventures will complement the bank’s existing financial services by helping customers better manage risks while strengthening their financial security.
Shareholders also approved several governance resolutions, including the re-election of directors Isaac Macharia, Jonas Mushosho, Evanson Baiya, and Farida Khambata. They further endorsed the appointment of Eliane Ubalijoro to the board, pending regulatory clearance.
In addition, Ernst & Young (EY) was reappointed as the group’s external auditor for another year.
Equity Group currently operates in seven African countries and serves approximately 22.7 million customers, with continued investment in digital banking, financial inclusion, and integrated financial services.