By Mulengera Reporters
Shareholders of Equity Group Holdings Plc have approved an ambitious expansion into the insurance sector in Kenya and the Democratic Republic of Congo (DRC), as the regional financial services giant seeks to diversify beyond traditional banking and strengthen its footprint across Africa.
The approvals were granted during the Group’s 22nd Annual General Meeting (AGM) held virtually on June 24, where shareholders also endorsed a record dividend payout of KShs 21.7 billion, equivalent to approximately UGX 586 billion, reflecting strong investor confidence in the lender’s growth strategy and financial performance.
The dividend, equivalent to KShs 5.75 per share, represents a 35.5 percent increase from the previous year’s payout of KShs 16.04 billion, or approximately UGX 433 billion.
Beyond rewarding shareholders, the AGM signaled Equity’s determination to expand its non-banking revenue streams at a time when financial institutions across East Africa are increasingly looking to diversify amid heightened competition, changing customer needs, and evolving regulatory requirements.
Shareholders approved plans to establish three new insurance subsidiaries under Equity Group Insurance Holdings Limited, subject to regulatory approvals. The expansion includes a microinsurance company in Kenya with a capital base of KShs 192 million, approximately UGX 5.2 billion, as well as a life insurance company and a general insurance company in the DRC with capital investments of USD 12 million and USD 13.37 million respectively.
The move is expected to strengthen Equity’s ability to provide integrated financial services by combining banking, insurance, payments, and investment solutions under one ecosystem. Analysts say the strategy could help the lender unlock new revenue streams while deepening customer relationships across its regional markets.
Speaking after the AGM, Group Chairman Prof. Isaac Macharia said the resolutions reflected shareholder confidence in the institution’s governance framework and long-term growth agenda.
“The approvals received today reflect our shareholders’ confidence in Equity’s strategy and oversight. We remain committed to strong governance, prudent stewardship, and delivering sustainable value,” he said.
Group Managing Director and Chief Executive Officer Dr. James Mwangi said the insurance expansion would enhance the Group’s ability to support households and businesses through comprehensive financial solutions.
“The approvals to expand our insurance footprint strengthen our ability to offer more holistic financial services that help customers and communities manage risk, build resilience, and plan confidently for the future,” he said.
Shareholders also approved several governance resolutions, including the re-election of board members Prof. Isaac Macharia, Jonas Mushosho, Dr. Evanson Baiya, and Farida Khambata. They further endorsed the appointment of Dr. Eliane Ubalijoro, subject to regulatory approval. Audit firm Ernst & Young was reappointed as the Group’s external auditor until the next AGM.
With operations in seven African markets and a customer base of 22.7 million, Equity Group has increasingly focused on digital banking, financial inclusion, and ecosystem-based financial services. The latest shareholder approvals are expected to reinforce the lender’s growth trajectory while positioning it to capitalize on opportunities in Africa’s largely underpenetrated insurance sector, where demand for affordable risk protection products continues to rise. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
