Equity Group shareholders have approved a Kes 15.1 billion dividend payout for the second year in a row, representing a 36 percent ratio compared to the previous year's 33.6 percent.
The payout was approved during the 20th Annual General Meeting as the shareholders voted in favor of all proposals by the Board of Directors, with a large majority of the votes being made electronically.
According to Equity Group Managing Director and Chief Executive Officer James Mwangi, the payout depicts a sustained return to shareholders amid an operating environment grappling with volatility marked by inflation, widespread currency depreciation, and interest rate hikes.
“36 percent payout of the Kes 43.7 billion Profit After Tax or Kes 11.1 earnings per share and dividend yield of 11.9 percent on the 2023 year-end closing share price of Kes 33.65 or 800 percent on par value,” he said.
Further, the shareholders approved the creation of the Equity Group Employee Share Ownership Programme (EGH ESOP) Trust Deed and Scheme Rules, with a 5 percent allocation to the share capital.
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The approvals includes creation of a banking holding company that will consolidate the activities of all the banking subsidiaries within the Group.
Equity Group operates banking subsidiaries in Kenya, Uganda, Tanzania, South Sudan, Rwanda and the Democratic Republic of Congo (DRC) currently but following the decision the company will now operate under four groups including the Banking Group, Insurance Group, Technology Group and the Foundation Group.
The move will position Equity Group as an employer of choice in its various markets and sectors.
“The staff are the most valuable assets we have, and they are the ones that deliver the promise to our customer and the ESOP will attract and retain the right talent,” he added.
Additionally, Equity shareholders gave the green light to the incorporation of a health insurance subsidiary to undertake health insurance underwriting in the country to entrench its footprint in the insurance sectors.
The health insurance company will be a subsidiary of Equity Group Insurance Holdings Limited.
