Shareholders of Equity Group Holdings Plc have granted approval for the financial services giant to establish a representative office in the United Arab Emirates (UAE), pending regulatory clearances. Concurrently, they endorsed a substantial cash dividend payout of Sh16 billion for the year.
During the Group’s 21st Annual General Meeting (AGM) held in Nairobi, shareholders backed management’s plan to open the UAE representative office. This move, subject to approvals from Kenyan and UAE authorities, marks a deliberate step to enhance Equity’s regional and global reach. Equity Group Chairman Prof. Isaac Macharia emphasized the strategic intent, stating the office aims to “deepen regional and global connectivity.”
The UAE office is positioned to act as a crucial bridge, facilitating increased business, trade, and investment flows between Equity’s core markets in East and Central Africa and the UAE, the wider Middle East, India, and Central and South Asia regions. It signifies Equity’s ambition to capture a larger share of the growing economic linkages across these corridors.
In a significant return to shareholders, the AGM approved a total dividend payout of Sh16 billion. This translates to a dividend of Sh25 per ordinary share. The dividend will be payable on or about June 30, 2025, to shareholders registered as of the close of business on May 23, 2025.
This payout aligns with Equity Group’s stated dividend policy, which targets a payout ratio of between 30 percent and 50 percent of profit after tax. The Sh16 billion dividend for the year under review represents a payout ratio of 34 percent, comfortably within the policy range.
Beyond the headline approvals, shareholders also confirmed the appointment of a new director to the Equity Group Holdings Plc Board. Furthermore, they gave their assent to several key governance policies presented during the meeting. These included policies governing:
Remuneration: Outlining the framework for compensating directors and senior management.
Stakeholder Engagement: Defining how the Group interacts with its various stakeholders.
Shareholder Approval Policy: Setting thresholds and processes for matters requiring explicit shareholder consent.
Equity Group Chief Executive Officer Dr. James Mwangi expressed confidence in the Group’s trajectory following the AGM resolutions. He highlighted the dual focus driving Equity’s future: “Equity Group continues on a strong growth trajectory, driven by our commitment to innovation, regional expansion, and sustainable practices.”
The approval for the UAE office underscores the “regional expansion” pillar, while the consistent dividend payout reflects financial strength and a commitment to shareholder value. The endorsement of governance policies reinforces the foundation for sustained growth.
The establishment of the UAE representative office now hinges on receiving the necessary regulatory approvals from the Central Bank of Kenya and the relevant financial authorities in the UAE. Once operational, the office is expected to play a pivotal role in identifying and facilitating cross-border opportunities for the Group and its clients across the targeted regions. The Sh16 billion dividend provides a substantial return to investors as the Group pursues its next phase of growth.
– By Nusurah Nuhu
