Equity Group, Led By James Mwangi, Plans 30 Million Capital Boost For Subsidiaries

Equity Group to invest 30.4 million in Tanzania and Uganda as asset growth outpaces profit, ensuring financial stability without shareholder dilution.

Regional subsidiaries now contribute 49 of total assets, with Tanzanias profit soaring 107 and Ugandas up 186, reflecting strong performance.

Despite robust earnings, Equity maintains a conservative dividend payout of 124.64 million, prioritizing reinvestment for sustained regional expansion.

Equity Group, East Africas largest financial services provider, led by Kenyan banker James Mwangi, is injecting 30.4 million into its Tanzanian and Ugandan subsidiaries as asset growth outpaces profit accumulation. The move reinforces the banks regional presence and strengthens balance sheets to keep pace with expansion.

This latest Ksh3.9 billion 30.4 million investment follows previous infusions, including 10 million for Tanzania in 2022 and a significant 70 million for its Democratic Republic of Congo DRC operations. Since acquiring the DRC unit in 2015, Equity has expanded its balance sheet from Ksh19.3 billion 150.07 million to Ksh660 billion 5.13 billion, demonstrating the banks aggressive push into regional markets.

Mwangi noted that while Ugandas unit is profitable, it needs additional capital to sustain its rapid growth. Tanzania, after grappling with high non-performing loans, has now entered a growth phase. Tanzania will require an additional 20 million, while Uganda may need 10 million to support expansion without diluting shareholders, he said. Instead of seeking external funding, Equity is relying on internal resources, citing market undervaluation as a reason to avoid issuing new shares.

According to its 2024 annual report , regional operations now contribute nearly half of the groups total assets and loans. In Tanzania, revenue grew by 20 percent year-over-year, with profit after tax jumping 107 percent, while Ugandas profit surged 186 percent.

Under Mwangis leadership, Equity has deepened its footprint in Uganda, Tanzania, South Sudan, Rwanda, and the DRC. As the banks largest individual shareholder, with a 3.39 percent stake 127.8 million shares, he has overseen its transformation into a Pan-African banking powerhouse.