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Kenyan multimillionaire businessman and leading banking executive James Mwangi, is poised to receive Ksh510.4 million ($3.87 million) in dividends from Equity Group Holdings, a top financial services group.
The sizeable payout, which is scheduled to be deposited into Mwangi’s bank account on June 30, accounts for a significant portion of the Ksh15.1 billion ($114.57 million) approved by the lender’s board of directors.
In local currency terms, Mwangi’s expected dividend of Ksh510.4 million is 33-percent higher than his last year’s payout of Ksh382 million.
Even after accounting for the depreciation of the Kenyan shilling, Mwangi’s dividend is still expected to be a significant $3.87 million, an increase of 15 percent from the $3.35 million that he received in 2020.
Equity Group Holdings Limited, located in Nairobi, is a prominent financial services conglomerate with operations in Uganda, Tanzania, South Sudan, Rwanda, the Democratic Republic of the Congo, and Kenya, its home base.
James Mwangi, a significant shareholder with a 3.38-percent stake in the Kenyan lender, has played a pivotal role in the expansion of Equity Group, which has now become the largest financial services group in East and Central Africa.
As of the end of the 2022 fiscal year, the lender’s total assets and retained earnings exceeded $11 billion and $1.4 billion, respectively. Its recently published financial statement highlights a 15-percent increase in profit after tax, rising from Ksh40.07 billion ($304.2 million) to Ksh46.1 billion ($350 million), attributed to growth in interest and non-interest incomes.
James Mwangi, the CEO of Equity Group, commented on the group’s outstanding financial performance, stating: “Equity is not about numbers. It is a human story built to solve problems in society. But this human story manifests itself in numbers. It is a story of consistency.”
Mwangi also explained the surge in the company’s operating expenses, adding: “We have strengthened our bench, by hiring more staff, and also, when you are doing well, you have to pay them well. That explains why the staff costs have gone up. We are willing to pay for competency.”
