Equity Group Holdings Announces Major Restructuring and Employee Ownership Program (ESOP) Launch in East Africa

Equity Group Holdings has announced significant changes to its corporate structure and employee benefits program, signaling a strategic shift in its operations across East Africa.

During the 20th Annual General Meeting, shareholders overwhelmingly approved the creation of an Employee Share Ownership Programme (ESOP), allocating 5% of the company’s share capital to staff. Equity Group CEO James Mwangi emphasized the importance of this move, stating, “The staff are our most valuable assets. This ESOP will help us attract and retain top talent across our markets.”

In a major restructuring effort, shareholders also greenlit the formation of a banking holding company to consolidate the Group’s various banking subsidiaries. This new structure will see Equity Group’s operations divided into four distinct groups: Banking, Insurance, Technology, and Foundation.

The restructuring aims to streamline operations across Equity’s presence in Kenya, Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of Congo. It also paves the way for expansion into new sectors, as evidenced by the approved incorporation of a health insurance subsidiary under Equity Group Insurance Holdings Limited.

These strategic moves come alongside the company’s strong financial performance, with shareholders approving a record dividend payout of Sh. 15.1 billion for the second consecutive year. The payout ratio increased to 36% from 33.6% the previous year, reflecting the Group’s resilience in a challenging economic environment marked by inflation and currency volatility.

Equity Group’s expansion plans were further solidified with the ratification of the Cogebanque acquisition, which has elevated Equity Bank Rwanda to the second position in that market with an 18% share.

These developments underscore Equity Group’s commitment to both its employees and its strategic growth across East Africa, positioning the company for a new phase of expansion and diversification.

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