EQUITY GROUP SHAREHOLDERS GIVE NOD TO THE CREATION OF A HEALTH INSURANCE UNDERWRITER

During the 20th Annual General Meeting ( AGM) of Equity Group,   shareholders voted in favour of a raft  of  proposals by the board of directors. This   included  a dividend payout of Kshs.  15.1 billion for  the  second year running.  The payout demonstrates  a sustained return to shareholders amid a challenging   operating environment that is  grappling with  inflation, widespread currency depreciation, and interest rate hikes.

In the 19^th AGM,  the shareholders approved the creation of Equity Group Employee Share Ownership Programme (EGH ESOP) and allocated 5% of the share capital to it. By the same token,  in  the 20^th AGM,   shareholders approved the EGH ESOP trust deed and scheme rules. This will position Equity Group as an employer of choice in the various markets and sectors where it operates

Further,  a  holding company that will consolidate the activities of all the banking subsidiaries within the group will also be created. Currently,  Equity Group operates banking subsidiaries in Kenya, Uganda, Tanzania, South Sudan, Rwanda and the Democratic Republic of Congo (DRC). Following the shareholders’ approval, it  will  operate under four groups :  banking, insurance, technology  and the foundation.

Insurance

To further entrench its footprint in the insurance industry, Equity shareholders gave the greenlight for the incorporation of a health insurance subsidiary to undertake health insurance underwriting in Kenya. The  company will be a subsidiary of Equity Group Insurance Holding  which already undertakes a life insurance and general insurance business in Kenya.

The Shareholders also   ratified the Cogebanque acquisition which led to Equity Bank Rwanda being a respectable position two in the market with an 18% market share. This creates opportunity for the Rwanda economy as it can now support large transaction in the market.

Prof. Isaac Macharia, chairman of the  Equity Group board told shareholders that driven by purpose, the Group has continued to support its customers to navigate the current harsh economic times characterized by volatility and uncertainty. “From inception, we have sought to proactively support our customers through relevant, affordable and easily accessible services and products. We understand that behind every account or transaction is a unique individual or organisation with specific requirements and goals,” said Prof. Macharia.

In the same vein, Dr. James  Mwangi,  Equity  Group Managing Director and CEO said that the good  performance  reflected   a positive outlook, continued trajectory of growth and shared value creation. “We are now a systemic bank in East Africa, one of the  fastest growing regions in the world. Our outlook remains positive, despite the challenging macroeconomic environment, Equity has adapted with agility and responsiveness to mitigate the challenging market conditions across the region. This reflects the strength of its leadership, the resilience of the employees, the anchored nature of our twin-engine business model, and the relevance of the Africa Recovery and Resilience Plan (ARRP).”