Equity Group shareholders have approved a dividend of Sh16 billion at an enhanced rate of Sh4.25 per share, payable on or about June 30.
This, as the group remained committed to its dividend policy which provides for a dividend payout ratio, in relation to the total amount of net income the company generates, of between 30 per cent to 50 per cent.
This year’s dividend payout is 34 per cent , as the group continued on a profit run with net earnings of Sh15.4 billion for Q1 2025.
Shareholders during the group’s 21st Annual General Meeting (AGM) this week also voted in favor of all proposed resolutions including board changes and the lender’s expansion.
Key governance policies approved include directors' remuneration, stakeholder engagement, transparency and disclosure, dispute resolution and board appointment procedures.
“These frameworks are designed to enhance accountability, promote ethical leadership, and ensure the Group continues to uphold the highest standards of corporate governance,” the lender said in a statement.
The AGM saw the successful election of several new directors among them Farida Khambata, a global expert in emerging markets finance with over 30 years of experience in investment and risk management.
Newly elected to the board, subject to regulatory approvals were Nick O'Donohoe, a seasoned development finance leader, Aloysius Uche Ordu, an international development strategist, Obadiah Barara, a veteran public financial management professional, Lakshmi Shyam-Sunder, a financial risk expert and David Mutombo, a global infrastructure and utility executive.
In addition, shareholders approved the appointment of Obadiah Biraro, Aloysius Uche Ordu, Lakshmi Shyam-Sunder and Evanson Baiya to serve as members of the Board Audit Committee.
The AGM also marked the retirement of Edward Odundo, Vijay Gidoomal, Helen Gichohi and Samwel Kirubi from the group board.
“Their dedicated service and leadership have contributed significantly to the Group’s growth, governance and strategic direction. The Chairman, Board and shareholders acknowledge and appreciate their valuable contributions,” the bank’s leadership said.
These Directors will continue to serve on different respective subsidiary boards with Vijay Gidoomal joining Equity Bank Kenya board, Edward Odundo serving on the Equity Life Assurance Kenya Board, Helen Gichohi joining the Equity Group Foundation board while Samuel Kirubi will serve as the Group Chief Operating Officer.
Equity Group also received approval to establish a representative office in the United Arab Emirates (UAE), subject to regulatory approvals.
This move aims to facilitate business, trade and investment opportunities between East and Central Africa, the UAE and the wider Middle East, India, Central and South Asia regions.
“Despite a complex and evolving macroeconomic landscape in 2024, Equity Group remained resilient, agile and purpose driven. We strengthened our governance structures across our six markets, aligned with emerging regulatory frameworks and advanced key strategic initiatives including the successful integration of Cogebanque into Equity Bank Rwanda,” Group chairman, Isaac Macharia, said.
CEO James Mwangi highlighted the Group's positive outlook and strategic vision.
"Equity Group continues on a strong growth trajectory, driven by our commitment to innovation, regional expansion and sustainable practices. The establishment of a Representative Office in the UAE marks an exciting step in our journey to connect Africa with global markets, creating new opportunities for trade and investment,” he said.
