Equity Group shareholders have endorsed a historic KES 15.1 billion dividend payout for the second consecutive year. During the company’s 20th Annual General Meeting, shareholders overwhelmingly approved all board proposals through electronic voting. This includes a dividend payout ratio of 36.0%, up from the previous year’s 33.6%.
In alignment with Equity Group Holdings Plc’s dividend policy, the payout reflects sustained returns to shareholders despite a challenging economic environment characterized by inflation, currency depreciation, and rising interest rates. Group Managing Director and CEO James Mwangi explained that the KES 4 per share dividend represents a 36.0% payout of the KES 43.7 billion post-tax profit, equating to KES 11.1 earnings per share and an 11.9% dividend yield based on the 2023 year-end share price of KES 33.65.
At the 19th AGM, shareholders also approved the creation of the Equity Group Employee Share Ownership Programme (EGH ESOP) and allocated 5.0% of the share capital to it. The 20th AGM saw the approval of the EGH ESOP Trust Deed and Scheme Rules, positioning Equity Group as an attractive employer across its operating markets. Chairman Isaac Macharia emphasized the importance of staff, noting that the ESOP would help attract and retain top talent.
Additionally, shareholders approved the establishment of a banking holding company to consolidate the Group’s banking subsidiaries in Kenya, Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of Congo (DRC). Equity Group will now operate under four divisions: Banking, Insurance, Technology, and Foundation.
In a move to strengthen its insurance sector presence, shareholders authorized the creation of a health insurance subsidiary in Kenya under Equity Group Insurance Holdings Limited, which already handles life and general insurance.
The AGM also ratified the acquisition of Cogebanque, elevating Equity Bank Rwanda to the second-largest market position with an 18.0% share. This acquisition is expected to boost Rwanda’s economy by supporting larger transactions.
Macharia reassured shareholders of the Group’s commitment to helping customers navigate current economic challenges. From its inception, the Group has aimed to support customers with accessible, affordable services and products tailored to their unique needs.
Mwangi highlighted the Group’s strong performance, positive outlook, and growth trajectory despite the tough macroeconomic environment. He credited the Group’s resilient leadership, dedicated employees, and the relevance of the Africa Recovery and Resilience Plan (ARRP) for its success. The Group’s client base increased to 19.6 million , and borrowing customers rose to 0.8 million.
Looking ahead, Equity Group sees sustainability as a crucial path for global progress, especially for Africa, which is rich in natural resources. Mwangi emphasized the importance of creating economic, market, and social models that reward sustainable practices for future advancement.
