Equity Bank Kenya Limited is a publicly traded company listed on the Nairobi Securities Exchange (NSE). It was founded in 1984 by Peter Munga.
The bank's ownership structure is diverse, with both local and international investors holding shares. As of the latest available data, the bank's largest shareholders include the National Social Security Fund (NSSF) and the Kenya Government.
Equity Bank's governance structure is overseen by a Board of Directors, which is responsible for setting the bank's overall direction and strategy. The Board is composed of experienced professionals with expertise in various fields.
The bank's management team is led by a Chief Executive Officer (CEO) who is responsible for implementing the Board's decisions and overseeing the day-to-day operations of the bank.
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Bank Operations
Equity Bank Kenya Limited has a strong presence in the country, with over 260 branches and 8,000 agents across the country.
The bank's operations are supported by a robust technology infrastructure, which enables customers to access their accounts and conduct transactions online or through mobile banking.
Equity Bank Kenya Limited offers a range of banking services, including mobile banking, online banking, and agency banking, making it easy for customers to manage their finances.
The bank's mobile banking service, Equity Mobile, allows customers to transfer money, pay bills, and check their account balances using their mobile phones.
Equity Bank Kenya Limited has a large network of agents who provide banking services to customers in rural and underserved areas, increasing access to financial services.
Risks and Controversies
Equity Bank has faced its fair share of controversies, particularly cyber fraud associated with its ATM cards, EquitelSIM cards, and Eazzybanking services.
The bank has introduced a one-time PIN to its mobile banking and internet banking services in an effort to add more security layers to its services.
Cases of cyber fraud have been relatively consistent recently, prompting the bank to issue statements warning customers about the same.
Equity Bank employees have also been implicated in tax evasion scandals, with two employees surrendering to the KRA in 2016 for their role in facilitating tax evasion.
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A total of Ksh.124 million in import duty was lost in this scandal.
Equity Bank Congo was embroiled in a controversy with the Congolese Central Bank in January 2021 after its merger with BCDC.
The controversy centered around a memo in which James Mwangi unilaterally announced plans to integrate BCDC's operations and data into Equity Group's database.
A customer sued the lender in May 2023 for allegedly breaching their privacy after the bank shared their information with an unauthorized third party without consent.
In April 2024, hackers made away with Ksh 179,677,736 from 551 customers through debit card fraud in a 7-day expedition.
Customer and Funding
Equity Bank Kenya Limited is a fully owned subsidiary of Equity Group Holdings Plc, one of the largest financial service groups in East and Central Africa.
Their customer, Equity Bank (Kenya) Limited, has grown to become the second largest bank by assets today, with a key focus on the underserved MSME segment and a strong digital offering.
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The bank is the largest subsidiary in the Group, accounting for about 80% of the Group's total assets, and operates in six countries in East and Central Africa, including Kenya, DRC, Uganda, Tanzania, Rwanda, and South Sudan.
The bank has a long history, commencing operations in 1984 as Equity Building Society, and has since grown to become a leading financial institution in the region.
FMO has committed USD 25mln to the facility arranged by IFC, which will enhance the Bank's regulatory capital and be earmarked towards EBK's SME and climate finance portfolio.
Ownership
The Equity Bank Kenya Limited is owned by Equity Group Holdings. Equity Group Holdings has a massive customer base of over 14 million people across six East African countries. This makes Equity Bank Kenya Limited one of the largest commercial banks on the African continent by number of customers.
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Governance
The bank's governance structure is led by a strong and experienced team. Ambassador Erastus J O Mwencha chairs the eight-member board of directors.
This leadership ensures that the bank is well-managed and guided in its decision-making process. Gerald Warui serves as the managing director of the bank, overseeing its daily operations.
This combination of leadership and management expertise helps the bank make informed decisions and achieve its goals.
Who Is Our Customer?
Our customer is Equity Bank (Kenya) Limited, a fully owned subsidiary of Equity Group Holdings Plc.
They started as Equity Building Society in 1984 and have since grown to become the second largest bank by assets, focusing on the underserved MSME segment.
Their strong digital offering sets them apart, making them a key player in the financial services industry in East and Central Africa.
Equity Bank is the largest subsidiary in the Group, accounting for about 80% of the Group's total assets.
Their parent company, Equity Group Holdings Plc, is listed on the Nairobi Securities Exchange since 2006 and operates in six countries in the region.
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Customer and Funding
FMO has committed USD 25mln to the facility, which is part of a larger Syndicated Basel II Subordinated Loan of up to USD 165mln to EBK.
EBK is an existing client of FMO and a systemic bank with a solid financial track record and strong reputation. It's an important partner for promoting financial inclusion across East and Central Africa.
The loan will enhance EBK's regulatory capital, which has been affected by deteriorating asset quality due to COVID-19. The funds will be earmarked towards EBK's SME and climate finance portfolio.
The proceeds of the loan will be used by EBK to finance the SME portfolio growth, which is vital for Kenya's recovery amid the COVID-19 pandemic.
FMO aspires to build a strong relationship with EBK through financing MSMEs in Kenya's real economy, including Young, Female and COVID-19 affected entrepreneurs.
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Frequently Asked Questions
Who is the CEO of Equity Bank Kenya Limited?
James Mwangi has been the CEO of Equity Bank Kenya Limited since its rebranding two decades ago. He has led the bank's transformation into Kenya's second-largest bank by assets.
Is Equity Bank a real bank?
Yes, Equity Bank is a legitimate financial institution that offers a range of integrated financial services to individuals and businesses. With a global ranking as the 2nd strongest banking brand, Equity Bank is a trusted partner for achieving financial goals and creating wealth.
Does Equity Bank operate in Kenya?
Yes, Equity Bank is a Kenyan bank with its registered office in Nairobi. It's incorporated and registered under the Kenyan Companies Act.
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