Equity Group led by Kenyan banker James Mwangi rewards shareholders with $116.5-million dividend

Feyisayo Ajayi -

Key Points:

  • Equity Group, led by Kenyan banker James Mwangi, announced a $116.54-million dividend payout after approval at its AGM.
  • Shareholders unanimously approved a final dividend of Ksh15.08 billion ($116.54 million) at the AGM in Nairobi.
  • Equity Group’s expansion efforts, including new health insurance subsidiary, aim to enhance operational efficiency and market reach under James Mwangi.

Equity Group, East and Central Africa’s leading financial services group led by Kenyan banker James Mwangi, announced a substantial dividend payout of $116.54 million to its shareholders following the approval at its 20th Annual General Meeting (AGM). The dividend, which represents the final payout for the 2023 fiscal year, underscores the bank’s commitment to delivering consistent returns despite prevailing economic hardships. 

During the AGM held in Nairobi, shareholders unanimously approved the distribution of a final dividend amounting to Ksh15.08 billion ($116.54 million). This decision reflects Equity Group’s resilience in navigating challenges such as inflation, currency depreciation, and rising interest rates throughout the fiscal year.

Equity Group boosts dividends, expands operations

James Mwangi, Equity Group’s Group Managing Director and CEO, emphasized the significance of the dividend, stating, “The Ksh4 ($0.031) per share payout constitutes 36 percent of the Ksh43.7 billion ($337.75 million) profit after tax, offering shareholders a robust dividend yield of 11.9 percent based on the year-end closing share price of Ksh33.65 ($0.26) or 800 percent on par value.”

In addition to the dividend announcement, shareholders approved the Equity Group Employee Share Ownership Programme (EGH ESOP) Trust Deed and Scheme Rules. This initiative aims to bolster Equity Group’s position as an employer of choice, enhancing its ability to attract and retain top talent across its operational markets.

Shareholders also endorsed the restructuring of Equity Group into four distinct operations: Banking, Insurance, Technology, and Foundation. This move is designed to streamline the group’s activities and expand its footprint, including the establishment of a health insurance subsidiary in Kenya.

The Group reported a profit of Ksh 41.98 billion ($324.92 million) as of Dec. 31, 2023. Total assets were Ksh 1.82 trillion ($14.1 billion). Total shareholders’ fund rose to Ksh 218.14 billion($1.69 billion from Ksh182.21 billion($1.41 billion) in the previous year.

Equity Group expands under James Mwangi’s leadership

Under the strategic leadership of James Mwangi, Equity Group has demonstrated robust growth, increasing its active client base by 10.73 percent from 17.7 million in 2022 to 19.6 million in 2023. Mwangi’s vision has propelled the conglomerate’s expansion into multiple countries across East and Central Africa, solidifying its status as a regional powerhouse.

Despite facing economic headwinds in recent years, Equity Group continues to exhibit resilience, establishing itself as a systemic bank in East Africa through its strong presence and digital-first approach, positioning it for sustained growth in the region.