Equity Group shareholders approve insurance expansion, $167 million dividend payout

Equity Group Holdings, East Africa’s largest financial services group led by Kenyan banker James Mwangi, convened its annual general meeting yesterday, where shareholders approved an expansion of its insurance business into Kenya and the Democratic Republic of Congo, alongside a Ksh21.7 billion ($167.47 million) dividend for the 2025 financial year.

The approvals were granted at the Group’s 22nd Annual General Meeting, held virtually, marking a strategic push to deepen its integrated financial services offering across East and Central Africa.

Insurance expansion across key markets
The expansion, approved as special resolutions, will see Equity Group establish three new subsidiaries under Equity Group Insurance Holdings Limited, subject to regulatory approvals.

These include a microinsurance unit in Kenya with a capital base of Ksh192 million ($1.48 million), as well as two insurance entities in the Democratic Republic of Congo, a life insurance company capitalised at $12 million and a general insurance firm with $13.37 million in capital.

Group CEO James Mwangi said the move will enhance the bank’s ability to provide comprehensive financial solutions across its markets. The expansion is aimed at helping customers better manage risk, build resilience, and improve long-term financial planning.

Dividend growth signals strong earnings momentum
Shareholders also approved a final dividend of Ksh5.75 ($0.04) per share, bringing the total payout to Ksh21.7 billion ($167.46 million), representing a 35.5% increase from the Ksh16.04 billion ($123.78 million) distributed for the 2024 financial year.

The increase reflects the Group’s earnings growth and continued commitment to delivering shareholder value while investing in regional expansion. On governance matters, shareholders re-elected directors Isaac Macharia, Jonas Mushosho, Evanson Baiya, and Farida Khambata, reinforcing continuity at the board level.

They also approved the appointment of Eliane Ubalijoro as a new director, subject to regulatory clearance, and reappointed Ernst & Young as external auditors.

Regional expansion and profit surge

Equity Group Holdings Plc has continued its expansion across East and Central Africa, with operations spanning Kenya, Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of the Congo. Under James Mwangi, the bank’s largest shareholder and CEO, the lender’s balance sheet strengthened, with total assets increasing 9.22% to Ksh1.97 trillion ($15.21 billion), driven by higher investment securities and net loans to customers.

Retained earnings grew 19.6% to Ksh278.5 billion ($2.15 billion), while total shareholders’ funds rose to Ksh309.5 billion ($2.39 billion). Reflecting robust performance, the board recommended a dividend of Ksh5.75 ($0.04) per share, up from Ksh4.25 ($0.03) in 2024, payable subject to shareholder approval in May 2026.

The approvals position Equity Group to strengthen its foothold in insurance and diversify revenue streams, as it builds a more resilient, regionally integrated financial services platform.