Equity Group stake tops $73 million as NSE rally boosts holdings

James Mwangi, the Managing Director and CEO of Equity Group, has solidified his position as Kenya’s richest banker as his stake in the leading East African lender surged past $70 million, driven by a sustained rally on the Nairobi Securities Exchange (NSE).

Stake gains track Equity Group’s market rally

Mwangi, a top figure in the East African financial services industry, currently holds a 3.39% stake in Equity Group, equating to 127.81 million shares. Over the past three months, the market value of his stake has increased by Ksh958.57 million ($7.34 million), fueled by growing investor confidence in the bank’s earnings outlook and regional expansion strategy.

Equity Group’s share price has advanced more than 11% since the start of the year, climbing from Ksh67 ($0.51) to Ksh74.5 ($0.57). The rally has lifted the value of Mwangi’s holdings from Ksh8.56 billion ($66.38 million) on Jan. 1 to Ksh9.52 billion ($73.72 million). The gain underscores renewed momentum on the Nairobi bourse, where banking stocks are benefiting from improved profitability and stronger regional earnings contributions.

Dividend boost strengthens shareholder returns

Mwangi is also set to receive Ksh735 million ($5.7 million) in dividends after Equity Group increased its shareholder payout following a surge in earnings. The lender proposed a final dividend of Ksh5.75 per share, up from Ksh4.25 a year earlier, bringing the total payout to Ksh21.7 billion ($167.4 million).

The dividend will be distributed after the company’s annual general meeting scheduled for June 24, reinforcing Equity’s position as one of East Africa’s top income-generating banking stocks.

Profit growth driven by regional diversification

Under Mwangi’s leadership, Equity Group has transformed from a struggling microfinance institution into one of Africa’s most expansive banking franchises. The lender now operates across six markets, Kenya, Uganda, Tanzania, Rwanda, South Sudan, and the Democratic Republic of Congo.

For the 2025 fiscal year, net profit rose 54.6% to Ksh71.96 billion ($555.37 million), up from Ksh46.55 billion ($359.22 million) a year earlier. Total assets reached Ksh1.97 trillion ($15.26 billion), while regional subsidiaries accounted for 45.5% of total earnings.

The bank serves more than 16 million customers, reflecting its scale in retail and SME banking across East and Central Africa.

Investors record double-digit returns

Equity Group shares have delivered year-to-date gains of 11.06%, maintaining its position as Kenya’s second-most valuable listed company with a market capitalization exceeding $2 billion. The performance aligns with broader investor appetite for African banking stocks with diversified earnings streams, similar to trends seen in other high-growth financial institutions across the continent.

Equity Group’s performance underscores the importance of cross-border diversification in mitigating domestic economic risks, an approach increasingly adopted by African financial institutions seeking scale and resilience.