From L-R: Equity Group Chairman, Prof. Isaac Macharia, Equity Group Managing Director and CEO, Dr. James Mwangi and Equity Group Foundation Director Operations, Dr. Joanne Korir during the Full Year 2024 Investor Briefing event. [Wilberforce Okwiri,Standard]
Equity Group has increased its dividend payout to a new record, rewarding shareholders with a larger return following a significant profit recovery.
The move signals confidence in the bank’s financial resurgence after a year of improved performance, reversing a previous yearly earnings decline.
In the financial results for the year ending 31 December 2024, released yesterday, the bank increased its cash distribution by 6.25 per cent to Sh16 billion or Sh4.25 per share—its highest ever—up from Sh4 per share a year earlier.
This came as Kenya’s largest bank by customer base reported a 10.9 per cent jump in net earnings, posting Sh46.54 billion for the full year ended 31 December, compared to Sh41.97 billion in the same period last year.
The group’s profit before tax grew by 17 per cent to Sh60.7 billion, while earnings per share rose by 11 per cent to Sh12.3.
Norwegian Investment Fund-backed Arise B.V. will be the largest beneficiary of the generous cash distribution, receiving Sh2.04 billion, reflecting its 12.76 per cent stake.
Equity Group Chief Executive James Mwangi will receive Sh542.4 million through his 3.39 per cent shareholding, while other shareholders, holding 62.8 per cent, will share the remainder.
Equity’s growth strategy and regional expansion
Equity Group’s decision to raise the dividend, representing a 34.5 per cent payout ratio, underscores its commitment to shareholder value.
The performance comes on the back of a six per cent rise in total income to Sh193.8 billion.
“We are proud of the resilience demonstrated by the Group amidst a challenging global economic landscape,” said Mwangi at an investor briefing in Nairobi yesterday.
“Our financial strength gives us the flexibility to seize opportunities as the regional economy presents diversified levers for growth.”
The group’s regional expansion and product diversification strategy continues to drive growth, with subsidiaries contributing 49 per cent of total assets, 48 per cent of total loans, and 54 per cent of profit before tax.
Notably, Equity Bank Rwanda’s revenue grew by 36 per cent, Tanzania by 20 per cent, and DRC by nine per cent year-on-year. Profit after tax for Rwanda grew by 30 per cent, Tanzania by 107 per cent, Uganda by 186 per cent, and DRC by 29 per cent.
The group’s total deposits reached Sh1.4 trillion, with a customer base of 21.6 million.
Equity has also diversified into insurance, issuing 14.1 million policies in the past three years, with 5.9 million unique customers, Mwangi said.
Mwangi highlighted the successful diversification efforts, emphasising the growing contribution from regional operations. Equity’s life assurance business grew its profit before tax by 58 per cent to Sh1.5 billion from Sh934 million in 2023.
The bank recently acquired a general insurance licence, in addition to its life assurance business, giving it the ability to offer a comprehensive suite of insurance solutions.
“As we continue to expand our financial services ecosystem, our Bancassurance unit remains a vital component of our growth strategy. The six per cent increase in premium collections, despite the current market challenges, underscores the unit’s potential,” Mwangi said.
“Our insurance premium financing solution has seen a significant 50 per cent increase in uptake, reflecting our dedication to supporting customers through uncertain times as they prioritise protecting their health, life, and assets.”
The lender’s performance caps a strong year for Kenyan banks, which have reported substantial earnings despite a challenging economic environment. By Brian Ngugi, The Standard
A photo collage of Chief Justice Martha Koome and former Cabinet Secretary Raphael Tuju, March 22.
The Judiciary has responded to former Jubilee Secretary General and Cabinet Secretary Raphael Tuju following his allegations of corruption involving senior judges handling a case linked to his company, Dari Limited.
In a worded statement released on Thursday by Judiciary Spokesperson Paul Ndemo, the Judiciary dismissed Tuju’s claims, reaffirming its commitment to upholding the rule of law and ensuring the due administration of justice.
"It is therefore clear that the matters between Dari Limited and the bank are actively before competent courts and the JSC. In accordance with the sub judice rule—which upholds the rule of law and the due administration of justice—these issues should be left for judicial determination and resolution by the JSC," read part of the Judiciary's statement.
Further, the Judiciary urged Tuju and other involved parties to avoid litigating their cases through the media or on social media platforms, emphasizing the importance of allowing legal processes to take their course.
Judiciary
"We urge all parties to refrain from litigating their cases through the media or on social media platforms. We also call on the media to verify facts before reporting on such matters to avoid contributing to misinformation or disinformation," the statement added.
Following the ruling, Tuju took a swipe at the Supreme Court for declining to admit cross-examination requests against the accused official after it had made a ruling in favour of the bank.
''In the meantime, the SCOK had issued rulings in favor of the bank based on the lies and statements that were recanted by its official. Despite our pleas that the bank official be cross-examined, the Supreme Court mysteriously declined to take this important piece of evidence,'' Tuju stated.
''It should be of interest that the case by Nelson Havi seeking the removal of Supreme Court judges cites our Dari limited case as one of the grounds for the removal of the judges,'' Tuju noted
''The recusal by the bench of 5 judges has no precedent in the Commonwealth law and is also currently the subject of litigation in other fora.''
Tuju has been actively engaging with the media and has also submitted confidential files to the Ethics and Anti-Corruption Commission (EACC) concerning the conduct of Supreme Court judges. However, the fate of these documents remains undisclosed to the public.
This came shortly after he penned an open letter to Chief Justice Martha Koome, calling for urgent action to address the challenges facing the justice sector. by Frankline Oduor, Kenyans.co.ke
The Congolese President Tshisekedi, assisted by an efficient team at his Ministry of Foreign Affairs, succeeded these recent weeks to turn the tides of international public opinion towards the Kagame regime in Rwanda. The image of President Kagame shifted from “developmental dictator” to ruthless invader of his neighbour country, motivated by greed and thirst for power.
The Congolese President Tshisekedi, assisted by an efficient team at his Ministry of Foreign Affairs, succeeded these recent weeks to turn the tides of international public opinion towards the Kagame regime in Rwanda. The image of President Kagame shifted from “developmental dictator” to ruthless invader of his neighbour country, motivated by greed and thirst for power. Several western countries belatedly took sanctions against Rwanda in order to halt the progress of the M23/AFC movement supported by Rwandan troops. This does not necessarily imply support for the Tshisekedi regime. Countries in the region and the DRC population are painfully aware of the profound flaws of his rule.
GOVERNANCE PROBLEMS
(Photo credit: Wikimedia Commons)
The parliamentary majority which was pro-Kabila after the 2018 elections was bought off to ensure a pro-Tshisekedi stance. The 2023 electoral process did not see a return to a legitimate majority by free and transparent elections, but most MPs and probably also the president occupied their seat thanks to disorganized fraud. As a result, the legitimacy of the governing institutions is deeply flawed. Legitimacy can be acquired by good and efficient governance, but this has so far not been the case.
The current regime has clear issues with corruption, with the president justifying kickbacks as perfectly legal, or praising a minister of finance who reportedlyembezzled millions of dollars. Comprehensive files have been drafted about cases of corruption by the Finance Inspectorate, but no legal process or sanctions have been initiated. Instead it appears as if clientelist appointments are preferred over competence, affecting the country’s governance in a negative manner. The government itself is superseded by an army of presidential counsellors, constituting a parallel government. As a result of these issues, national and international reputation of President Tshisekedi has been profoundly damaged, and furthermore undermined by the President’s problematic reliability, frequently contradicting himself.
The President’s management of the war in the East has clearly exposed his difficulties to run the country, leaving it with very little resistance against a rebellion supported by an invading army. He is kept in power mainly through international support (with a surprising certificate of good governance delivered by the IMF !) and an apparatus of repression headed by the president’s brother who nevertheless has no experience or training in security matters.
The formal branch of the system is dominated by military intelligence (formerly called DEMIAP), doubled by a parallel informal branch headed by general John Tshibangu, who succeeded to have opponents arrested in Angola and Zambia, even in breach of elementary international law. Anyone who is considered to be an opponent is arrested, brought to secret detention centres and often disappears. This has proven to be efficient to block any dissident opinion. Apparently, priority is given to the protection of the regime rather than to find a realistic solution for the occupation of East Congo and the real problems behind the current crisis, despite a national budget for defense going beyond one billion USD.
nature of the current regime
What differentiates the Tshisekedi regime from its predecessors is its elevated communitarisation of power. The core of the regime is made up by Tshisekedi’s community of origin in the Kasai provinces. Despite his shortcomings, he enjoys considerable support through his community’s solidarity and external cohesion. After years of what the Kasai community experienced as discrimination, the Tshisekedi regime gave them clearly a preferential treatment for all appointments. Their often triumphalist attitude caused discontent with other communities and the regime is currently considered as a “Kasai regime” governing against the others.
The project to replace the current constitution to enable the current regime to continue for many years understandably raised resistance all over the country, which was only tempered by repression and fear for losing any financial advantages. Civil society is currently considerably weakened because many leaders who were very active in the struggle to prevent Joseph Kabila to remain in power now changed their attitude and support the current president for reasons of community solidarity.
At the center of the power structure is the presidential family, with key members as the president’smother controlling clientele networks all over the country. Almost any position of power or responsibility depends in one way or another from one or several members of the presidential family, be it members of parliament, province governors or vice-governors, military officers or members of the security apparatus. This implies that each clientele network neutralizes the others. It has become very difficult to sanction anyone for corruption, embezzlement or incompetence because of this clientele protection at the highest level. Needless to say that each network functions thanks to streams of money flowing from impoverished economic actors at the bottom to the top of the presidential family system.
This family network also uses the structures of the reigning UDPS political party.The UDPS during the nineties enjoyed massive support from all levels of society and all regions, in its struggle against the Mobutu regime. It is currently emptied from most of its competent officials and rules through local militias, attracting anyone looking for a job, a small remuneration, or even people engaging in criminal activities. The UDPS secretary general also commands a network all over the country.
what about katanga ?
The nature of the current regime is painfully felt in the mining province Katanga. A massive immigration from the impoverished Kasai provinces towards Katanga has created important social conflicts between the urbanized Katangese and the rural immigrant Kasai communities. The latter take on all sorts of small jobs, engage in petty trade and are recruited by local UDPS militias who are convinced that they have overtaken power and are at the origin of the appointments of a great number of UDPS officials (often from Kasai origin) in the Katanga provinces. They constitute a parallel power structure challenging the official authorities, controlling even a parallel customs administration at the key border post with Zambia Kasumbalesa, the export center of all minerals and key international trading post. With a great number of appointments of natives from Kasai at all levels, the local Katangese feel dominated and hope for the arrival of M23 to change the regime. They fear to speak out however because of the high level of repression. The party militias and the Kasai community (not the local Kasai community which has been living in the province for decades) fear vengeance from the Katangese if a regime change came about and have been armed with machetes and firearms to defend themselves.
Particularly important is the non-transparent managementof the mining sector by the current regime, going beyond anything committed in the past. According to local sources, not only are an important number of artisanal mining sites occupied by the government army and exploited for the real or alleged benefit of the presidential family, but military operations are organized to loot industrial production as happens e.g. with the Comide site from the company ERG, who reportedly wants to sell its assets because of this situation.
According to some sources, the sale of 20% of the production of the TFM company by Gécamines takes an opaque and non transparent route. Some mining companies reportedly work one week per month for the presidential family. Even in East Congo, the arrest of Mwangachuchu heading the SMB company controlling the Rubaya mine, responsible for about 40% of the current world tantalum production, was reportedly motivated by an effort overtake the mine for the benefit of the presidential family. In Katanga there is little or no return for this looting in terms of local investments.
lost credibility for felix tshisekedi
Felix Tshisekedi has lost credibility at the national, regional and international level, most of all by his difficulty to honour his commitments. But who could come next ? The most obvious candidate Joseph Kabila, who recently ended his long silence by media interventions and political consultations, is supported in Katanga who consider him to be a lesser evil than the current president. However, Kabila does not seem to have modified his idea of governance, political inclusion or prospects for the future of the DRC. In his reactivation of his party PPRD, he aligns the same officials as before and has not displayed any new vision for the country beyond criticism of Tshisekedi. His ally Moise Katumbi lost his political momentum in 2018 and does not take responsibility for a sound political leadership.
Martin Fayulu has failed to create any movement to consolidate his electoral victory in 2018. Still an important section of the younger, educated and technocratic political and economic elite of the country absolutely wants a profound change and a solution for the real problems of the country, even beyond the current political elite. If we want to avoid a a takeover by military who will not necessarily transform the country’s governance, or if we want to avoid a disintegration the country, new initiatives based on this discontent are essential.
The only realistic way forward, even if it is uncertain and tentative, is the initiative by CENCO/ECC who push for a broad dialogue and especially for a roadmap to address the real problems of the country through its “social pact”. This initiative, a beacon of hope, absolutely must be supported and encouraged at all levels. Only the Churches have currently a sufficient moral authority to design a framework for people and ideas to emerge who could point a way to a real solution. Yet another round of a transition which will inevitably lead to a recycling of a political elite disqualified in public opinion, will fail to bring a deeply needed real solution for the DRC. By Erik Kennes, Egmont
President William Ruto has dismissed Public Service Cabinet Secretary Justin Muturi following a fallout over the abduction of his son by the National Intelligence Service (NIS) in June 2023.
In a dispatch released by Chief of Staff and Head of Public Service Felix Koskei on Wednesday, the President nominated Mbeere North MP Geoffrey Ruku to take over the Public Service, Human Capital Development, and Special Programmes docket.
Ruku’s appointment is subject to parliamentary approval.
Additionally, President Ruto made further changes to his Cabinet, nominating Hanna Wendot Cheptumo, widow of late Baringo Senator William Cheptumo, as the Cabinet Secretary for Gender, Culture, the Arts, and Heritage.
The President also reassigned two serving Cabinet Secretaries in changes that saw Environment Cabinet Secretary swap dockets with his Health counterpart Deborah Barasa.
“By virtue of the Presidential Action, Cabinet is set to achieve its constitutional full strength—a move that bolsters the Administration’s capacity to continue steering Kenya’s socio-economic transformation,” Koskei stated.
Muturi’s sacking marks the peak of a fallout with President William Ruto after sustained tensions over rising abductions which the former Attorney General has blamed on government.
On March 12, Muturi dismissed calls for his resignation, insisting there was no valid reason for him to step down despite his refusal to attend Cabinet meetings.
Speaking on Citizen TV, Muturi addressed speculation about a fallout with President Ruto and denied claims of insubordination, expressing confidence in his position within the Cabinet.
Muturi defended his criticism of abductions, stating that he was fulfilling his duty as a public servant and that resigning would be “immoral.”
Accountability
He argued that leaders should commend him for advocating justice and accountability rather than demanding his resignation.
“The issue I raised on January 12 was an objection to abductions and extrajudicial killings happening in the country. I stated that, as a government, we must address these issues because if ignored, they could lead to chaos and anarchy,” Muturi explained.
He emphasized that speaking out against such violations should not be grounds for resignation, noting that the Kenya Kwanza coalition had pledged to end enforced disappearances during its campaign.
“As far as I know, it is not the policy of the government to abduct or kill people. Speaking against that cannot be a reason for resignation,” Muturi stated.
The feud between Ruto and Muturi escalated further on Wednesday after the now-sacked CS denied claims of incompetence during his tenure as Attorney General, following Ruto’s accusation of delays in creating a Muslim Endowment Fund.
Muturi clarified that the Waqf Act does not provide for the creation of a Muslim Endowment.
His response came after President Ruto, during an Iftar dinner at State House on Tuesday, described the former AG as “fairly incompetent” in handling legal matters, particularly regarding the establishment of Waqf—a commission responsible for managing Islamic endowments.
Muturi maintained that the existing law does not support the creation of such a fund.
President Ruto blamed Muturi for delays in implementing the Waqf Commission and assured the Muslim community that, under the new Attorney General Dorcas Oduor, the matter would be resolved within months.
“As we move forward, we will continue to address the issues raised here—particularly those concerning education—and explore the link between religious and formal education to determine what needs to be done,” Ruto said. By Bruhan Makong, Capital News
RSF fighters atop a pickup mounted with a multiple rocket launcher. (Courtesy photo)
The spokesperson for UN Secretary-General António Guterres on Tuesday said the global body is gravely alarmed by continued attacks on civilians across Sudan.
Stéphane Dujarric, who was briefing the media, revealed that on Monday night in North Darfur, dozens of casualties were reported when an air strike hit a market located about 40 kilometres north-west of El Fasher.
“The UN is also deeply concerned about escalating attacks on populated areas in Khartoum. In eastern Khartoum yesterday (Monday), there were reports of civilians killed and injured when artillery struck a mosque during evening prayers,” he said. “Civilian casualties were also reported on Sunday as a result of heavy shelling in Omdurman, Khartoum’s twin city.”
“The UN reminds all parties to the conflict of their obligations under international humanitarian law to protect civilians and civilian infrastructure, and to take all possible measures to avoid harm to civilians,” Dujarric added.
On the health front, he said that the ongoing hostilities and recent funding cuts by major donors have severely disrupted health services in Sudan, including in the Darfur region. Last month alone, nearly half of all reported attacks on healthcare facilities in Sudan occurred in Darfur.
“The UN’s partners working in health report that most facilities in the region have only one to two months of supplies remaining, with acute shortages in North and South Darfur states. The UN and its partners continue to do all they can to meet the rising needs – despite funding shortfalls and access constraints, including due to the ongoing hostilities,” Dujarric said.
“In North Kordofan, located to the west of Khartoum, the partners assessed recently that nearly 58,000 people – including displaced people, returnees and residents – are in urgent need of humanitarian assistance. A health partner is now operating a facility and mobile clinic, and distributions of food and non-food items are planned.
The UN continues to urge the international community to step up support for the humanitarian response in Sudan, both through increased funding and by pressing all parties to protect civilians, including aid workers, and ensure safe and unhindered access to people in need.
Turning to South Sudan, Dujarric said that following reports of renewed escalation in some areas in the county, the peacekeeping mission (UNMISS) is continuing its intensive engagements with key national actors to try and broker a peaceful solution.
“During meetings today with officials, including both the Vice President of the country, and the Minister of Defence, head of the peacekeeping mission, Nicholas Haysom, reiterated the urgent need to protect civilians, strictly adhere to the ceasefire, and resolve tensions through dialogue rather than military confrontation,” he stated. “The mission received reports of fresh aerial bombardments in Jikmir, near Nasir in Upper Nile State, as well as new clashes between the South Sudan People’s Defence Forces and Sudan People’s Liberation Army in Opposition near the capital Juba.” Radio Tamazuj
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