Equity Group to pay Kshs. 16 billion dividend as shareholders back expansion to UAE

June 30, 2025 in Business, Companies, Financial Services by Editor

Equity Group Holdings Plc will pay out a record Kshs. 16 billion (approx. UGX 445 billion) in dividends to shareholders following approvals at its 21st Annual General Meeting (AGM) held on June 25. The virtual AGM, attended by shareholders from across the globe, reaffirmed strong support for the Group’s governance reforms, regional expansion strategy, and commitment to long-term value creation.

Shareholders approved a final dividend of Kshs. 4.25 per share (approx. UGX 118), representing a 34% payout ratio in line with the Group’s policy of distributing between 30–50% of its profits. The dividend will be payable on or around June 30, 2025, to shareholders on record as of May 23.

Speaking at the meeting, Equity Group Chairman Prof. Isaac Macharia described the dividend as a testament to the Group’s “resilience, agility, and strategic clarity” in a year marked by complex macroeconomic conditions. “Despite a challenging environment in 2024, we continued to build momentum through strategic investments, governance strengthening, and market consolidation—particularly the successful integration of Cogebanque in Rwanda,” he said.

In a further boost to shareholder confidence, the AGM gave the green light for the establishment of a Representative Office in the United Arab Emirates. Subject to regulatory approvals, the office will serve as a strategic gateway to deepen business, trade, and investment ties between East and Central Africa and the broader Middle East and Asian markets.

Equity Group Managing Director and CEO Dr. James Mwangi said the UAE expansion represents a key step in the Group’s global strategy. “We are connecting Africa to the world—linking capital, goods, and services to accelerate growth and opportunities for our clients. The UAE office will act as a hub for trade finance and diaspora banking, enabling us to better serve cross-border clients,” he explained.

With operations in six African markets and assets exceeding Kshs. 2 trillion, the Group’s proposed foray into the Middle East, will further anchor its position as a leader in inclusive finance and responsible banking.

The AGM also approved major governance milestones, including the election of several new directors and the adoption of new policies on remuneration, stakeholder engagement, transparency, and board appointments. These measures are aimed at aligning Equity’s governance with evolving international standards.

Notably, shareholders confirmed the appointment of Mrs. Farida Khambata to the Board and approved, pending regulatory clearance, the addition of Mr. Nick O’Donohoe, Dr. Aloysius Uche Ordu, Dr. Lakshmi Shyam-Sunder, Eng. David Mutombo, and Mr. Obadiah Barara—an accomplished cadre with backgrounds in financial innovation, risk management, infrastructure, and global development.

Equity also strengthened its Board Audit Committee by appointing Dr. Ordu, Dr. Shyam-Sunder, Dr. Evanson Baiya, and Mr. Obadiah Biraro.

Looking ahead, Dr. Mwangi reiterated the Group’s commitment to sustainable business practices. “Our strategy integrates climate finance, health, education, MSME development, and clean energy into our core banking operations. We are building a banking ecosystem that creates lasting social and economic impact,” he said.