Kenya’s Equity Group enters pharmacy business to reduce treatment costs

Nairobi-based lender Equity Group Holdings is widening its healthcare push, as its medical arm, Equity Afia, moves into the pharmacy business in a bid to bring down the cost of treatment for patients and insurers. The decision reflects a simple calculation: medicines account for a large share of clinic expenses, and controlling that supply could help keep bills in check.

Equity Afia has opened its first pharmacy outlet, marking a pilot phase for a business the group believes could ease pressure on healthcare costs. By sourcing and dispensing drugs directly, the lender is aiming to reduce prices at the counter and, over time, lower insurance premiums for its customers. The move is also expected to improve consistency in drug availability.

Equity expands across East, Central Africa

The expansion comes as the group, led by chief executive James Mwangi, continues to deepen its footprint across East and Central Africa, including Kenya, Uganda, Tanzania, Rwanda, South Sudan and the Democratic Republic of the Congo. That regional spread has supported earnings and helped cushion the business against shifts in any single market.

For the financial year ended 2025, Equity Group reported profit of Ksh71.96 billion ($555.37 million), up from Ksh46.55 billion ($359.22 million) a year earlier, according to its audited results. The 54.6 percent increase was supported by contributions from subsidiaries across the region, which accounted for 45.5 percent of total earnings.

Income growth was steady. Interest income rose to Ksh173.64 billion ($127.93 million) from Ksh170.29 billion ($125.46 million), while non-interest income, including fees and commissions, increased to Ksh90.8 billion ($700.8 million) from Ksh85.07 billion ($656.59 million). The mix points to a business that is not relying on lending alone, but also building income from services.

Healthcare expansion complements banking growth

The balance sheet also showed continued expansion. Total assets climbed 9.22 percent to Ksh1.97 trillion ($15.21 billion), supported by higher lending and investment in securities. Retained earnings rose to Ksh278.5 billion ($2.15 billion), while shareholders’ funds reached Ksh309.5 billion ($2.39 billion).

On the back of the results, the board proposed a dividend of Ksh5.75 ($0.04) per share, up from Ksh4.25 ($0.03) in 2024, subject to shareholder approval at the group’s annual meeting in May 2026. Equity Group is not only growing its banking operations but also building services around its customers’ daily needs, with healthcare now a clear area of focus.