Equity Bank Kenya Limited

Last updated

Equity Bank Kenya Limited
Equity Bank
KN: EQTY
IndustryBanking
PredecessorEquity Building Society
Founded1984;40 years ago (1984)
Headquarters9th Floor, Equity Centre
Hospital Road, Upper Hill,
Nairobi
,
Kenya
Area served
 East Africa
Key people
Products Loans, Mortgages Investments, Debit Cards, Credit cards
RevenueIncrease2.svg:Aftertax: US$308.32 million (KES:33.9 billion) (2021) [2]
Total assets KES 960,938,706,000 (2024)[ citation needed ]
  • Increase2.svg KES 903,308,779,000 (2023)
  • KES 894,011,760,000 (2022)
[ citation needed ]
Total equity
  • Decrease2.svg KES 97,430,969,000 (2023)
  • KES 97,527,391,000 (2022)
[ citation needed ]
Number of employees
7,763 (December 2023) [3]
Parent Equity Group Holdings Limited
Website equitygroupholdings.com/ke/

Equity Bank Kenya Limited is a Kenyan bank and financial services provider headquartered in Nairobi providing retail banking and commercial banking services. The bank is licensed as a commercial bank by the Central Bank of Kenya, which is the national banking regulator of Kenya. [4]

Contents

In 2010 the bank introduced the Agency banking model, [5] which has proved a success [6] [ clarification needed ] and is regulated by Central Bank of Kenya Prudential guidelines. [7]

History

Equity Bank Kenya Limited was incorporated in 2014, as a result of the corporate restructure of its parent company Equity Group Holdings Limited. [8] Prior to November 2014, Equity Group Holdings Limited operated both as a licensed bank and a holding company for its subsidiaries.

On 31 October 2014, Equity Bank announced its intention to incorporate a new, wholly owned subsidiary Equity Bank Kenya Limited, to which it would transfer its Kenyan banking business, assets and liabilities. By converting Equity Group Holdings Limited into a non-trading holding company (as defined under the Banking Act) that owns both banking and non-banking subsidiary companies and provides strategic, brand, risk and personnel management to its subsidiaries, the group would be better able to invest and develop the businesses. [8]

During an extraordinary shareholders general meeting held on 24 November 2014, it was resolved to restructure the firm, leading to the formation of Equity Bank Kenya Limited. [9]

Equity Bank Kenya won the most Socially Responsible Bank of the Year by the African Banker Awards for the year of 2019 and also Bank of the Year in Kenya award by The Banker for the year 2019. [10]

According to the business daily, the bank rebranded in 2019 in a bid to do business under one brand for the next phase of growth as the bank was marking 35 years. [11] In 2020, Equity Bank acquired Banque Commercial Du Congo (BCDC). [12]

Ownership

The Equity Bank Kenya Limited is wholly owned by the Equity Group Holdings, which has a customer base in excess of 14 million in six East African countries, making it one of the largest commercial banks on the African continent by number of customers. [13]

Branch network

Equity Branch Fourways Branch in Nairobi, Kenya Equity Branch Fourways Branch.jpg
Equity Branch Fourways Branch in Nairobi, Kenya

Equity Bank maintains a network of 190 branches across Kenya, which includes 52 branches in Nairobi. [14]

Governance

The eight-member board of directors is chaired by Ambassador Erastus J O Mwencha. Gerald Warui, serves as the managing director of the bank. [15]

Controversies and fraud

Equity Bank has found itself in the midst of controversies, especially cyber fraud associated with its ATM cards, Equitel SIM cards, and Eazzybanking (a mobile banking platform) services that lead to the loss of clients' savings. [16] Although the cases are scattered, they have been relatively consistent recently, prompting the bank to issue statements warning customers about the same and adding more security layers to its services. For instance, the bank introduced a one-time PIN to its mobile banking and internet banking services. [17] [18] [19] It is also suspected that some cases are a result of inside job from unethical employees and agents and that refunds are not guaranteed with some clients reporting threats and intimidation when making followups. [20]

In the past, Equity Bank employees have also been implicated in tax evasion scandals. In 2016, the bank surrendered two of its employees to the KRA for prosecution over their role in facilitating tax evasion, in which Ksh.124 million in import duty was lost. [21]

In January 2021, Equity Bank Congo was embroiled in a controversy with the Congolese Central Bank after its merger with the country’s second-largest bank, Banque Commerciale du Congo (BCDC). In the middle of the controversy was a memo in which James Mwangi unilaterally announced plans to integrate BCDC's operations and data into Equity Group's database, set up an initial management committee, and appoint two managing directors. The Banque Centrale du Congo disapproved of the decisions arguing that the "Legal and regulatory requirements do not allow for two managing directors to oversee one institution" and that Mr. Mwangi had no capacity to make the decisions as he was only a "representative of a shareholder and has not been mandated by the acquiring company to make decisions on its behalf." [22]

In May 2023, a customer sued the lender for an alleged breach of their privacy after the bank shared his information with an unauthorized third party without consent. [23]

In April 2024, reports emerged that a 7-day hackers expedition made away with Ksh 179,677,736 from 551 customers through debit card fraud. [24]

See also

Related Research Articles

<span class="mw-page-title-main">Equity Bank Uganda Limited</span> Bank in Uganda

Equity Bank Uganda Limited (EBUL), is a commercial bank in Uganda. It is licensed by the Bank of Uganda, the central bank and national banking regulator. EBUL is a subsidiary of Equity Group Holdings Limited, a financial service conglomerate with headquarters in Kenya and subsidiaries in six countries of the African Great Lakes Region.

KCB Group Limited, also known as the KCB Group, is a financial services holding company based in the African Great Lakes region. The Group's headquarters are in Nairobi, Kenya, with its subsidiaries being KCB Bank Kenya Limited, KCB Bank Burundi Limited, KCB Bank Rwanda Limited, KCB Bank South Sudan Limited, KCB Bank Tanzania Limited, KCB TMB Congo and KCB Bank Uganda Limited.

<span class="mw-page-title-main">Co-operative Bank of Kenya</span> Commercial bank in Kenya

Co-operative Bank of Kenya is a commercial bank in Kenya, the largest economy in the East African Community. It is licensed by the Central Bank of Kenya, the central bank and national banking regulator. The bank has introduced Agency banking model and has a deep customer base in Kenya with over 7.5 million accounts as of December 2018. In 2010, the bank was awarded "Best Bank of Kenya" by the London Financial Times due to their excellent growth.

NCBA Bank Kenya, whose full name is NCBA Bank Kenya Plc, is a commercial bank in Kenya. It is licensed by the Central Bank of Kenya, the country's central bank and national banking regulator.

SBM Bank (Kenya) Limited, is a commercial bank in Kenya, the largest economy in the East African Community. It is licensed by the Central Bank of Kenya, the country's central bank and national banking regulator.

Housing Finance Company Limited, commonly referred to as Housing Finance, is a commercial bank in Kenya, regulated by the Central Bank of Kenya, the central bank and national banking regulator. HFC is major mortgage lender in Kenya and was the second-largest in the market with KSh33.7 billion in mortgage loans, as of December 2019. At that time, Kenya Commercial Bank, the largest mortgage lender in the country had KSh64.3 billion in mortgage loans.

<span class="mw-page-title-main">Trust Merchant Bank</span>

Trust Merchant Bank or TMB, is a commercial bank based in the Democratic Republic of Congo (DRC), with its headquarters located in Lubumbashi. The bank began operations in 2004. TMB operates in all sectors of the local banking market, including in retail banking, SME banking, corporate banking, and mobile banking.

<span class="mw-page-title-main">Equity Bank South Sudan Limited</span> Bank in South Sudan

Equity Bank South Sudan Limited (EBSSL) is a commercial bank in South Sudan. The bank provides banking services to individuals and to small and medium business enterprises. It is one of the commercial banks licensed to operate in the country by the Bank of South Sudan, the central bank and national banking regulator.

<span class="mw-page-title-main">Equity Bank Rwanda Limited</span> Bank in Rwanda

Equity Bank Rwanda Limited (EBRL), is a commercial bank in Rwanda. The bank is licensed by the National Bank of Rwanda, the central bank and national banking regulator.

Standard Chartered Kenya, whose official name is Standard Chartered Bank Kenya Limited, but is sometimes referred to as Stanchart Kenya, is a commercial bank in Kenya. It is a subsidiary of the British multinational financial conglomerate headquartered in London, United Kingdom, known as Standard Chartered. Stanchart Kenya is one of the banks licensed by the Central Bank of Kenya, the central bank and national banking regulator, in the largest economy in the East African Community.

<span class="mw-page-title-main">James Mwangi</span> Kenyan banker

James Mwangi CBS is a Kenyan accountant, career banker, businessman, and entrepreneur. He is the current Group Managing Director and Group Chief Executive Officer of Equity Group Holdings Plc, the banking conglomerate with one of the largest customer bases on the African continent, over 14 million as of December 2019.

<span class="mw-page-title-main">Equity Bank Tanzania Limited</span>

Equity Bank Tanzania Limited, is a commercial bank in Tanzania, the second-largest economy in the East African Community. It is licensed by the Bank of Tanzania, the country's central bank and national banking regulator. The bank is a member of the Equity Group Holdings Limited, a large financial services conglomerate, headquartered in Nairobi, Kenya, with subsidiaries in Kenya, Rwanda, South Sudan, Tanzania, Uganda, Democratic Republic of the Congo and a representative office in Ethiopia.

Stanbic Holdings Plc, formerly known as CfC Stanbic Holdings Limited, is a Kenyan financial services organization with headquarters in Nairobi, Kenya, with subsidiaries in Kenya and South Sudan. Stanbic Holdings is a member of the Standard Bank Group, a financial services giant based in South Africa. The institution is licensed and governed by the Central Bank of Kenya, the national banking regulator.

<span class="mw-page-title-main">Equitel</span> Kenyan mobile network operator

Finserve Africa Limited is a mobile virtual network operator (MVNO) in Kenya. It is a wholly owned subsidiary of Equity Group Holdings and is using the Airtel Kenya network as its carrier.

<span class="mw-page-title-main">Equity Group Holdings</span> Financial services holding company based in the African Great Lakes region

Equity Group Holdings Limited (EGHL), formerly Equity Bank Group, is a financial services holding company based in the African Great Lakes region. EGHL's headquarters are in Nairobi, Kenya, with subsidiaries in Kenya, Uganda, Tanzania, South Sudan, Rwanda, Democratic Republic of the Congo and a representative office in Ethiopia.

<span class="mw-page-title-main">Equity Banque Commerciale du Congo</span> Bank in the Democratic Republic of the Congo

Equity Banque Commerciale du Congo (EquityBCDC) is a commercial bank in the Democratic Republic of the Congo. It is a merger between Equity Bank Congo (EBC), formerly ProCredit Bank DRCongo, and Banque Commerciale du Congo. This followed the acquisition of majority shareholding in both banks by the Equity Group Holdings Limited, a Kenya-based financial services conglomerate with total assets in excess of US$10 billion.

Bank of Africa Kenya Limited, is a commercial bank in Kenya. It is one of the commercial banks licensed by Central Bank of Kenya, the country's central bank and the national banking regulator.

<i>Banque du Congo Belge</i> Former bank in Africa

The Banque du Congo Belge was a Belgian colonial bank that mainly operated in the Belgian Congo from 1909 to 1960. Following Congolese independence, it kept operating as the Banque du Congo from 1960 to 1971, the Banque Commerciale Zaïroise from 1971 to 1997, and the Banque Commerciale Du Congo (BCDC) from 1997 to 2020, when it was acquired by Kenya-based Equity Group Holdings and became part of Equity Banque Commerciale du Congo.

References

  1. ↑ "Ambassador Erastus J O Mwencha is Appointed Board Chairman of Equity Bank (Kenya) Ltd" . Retrieved 6 September 2021.
  2. ↑ "Audited December 2013 Annual Report". Equity Bank Group (EBG). March 2014. Retrieved 23 November 2014.
  3. ↑ Kabui Mwangi (4 September 2024). "Equity Bank Kenya staff numbers fall for first time in four years". Business Daily . Nairobi, Kenya. Retrieved 5 September 2024.
  4. ↑ "Central Bank of Kenya: Directory of Commercial Banks And Mortgage Finance Companies". Central Bank of Kenya. Archived from the original on 1 July 2014. Retrieved 23 November 2014.
  5. ↑ "New agency banking system deepens access to financial services". Business Daily. Retrieved 23 August 2017.
  6. ↑ "Equity Bank 3.0: Agency Banking & Equitel". bankelele.blogspot.co.ke. 16 November 2015. Retrieved 23 August 2017.
  7. ↑ "Legislation and Guidelines – CBK". CBK. Retrieved 23 August 2017.
  8. 1 2 "Circular To Shareholders for The Transfer of The Kenyan Banking Business to a Newly Created, Wholly Owned Subsidiary". Equity Bank Group. 31 October 2014. Archived from the original on 12 November 2014. Retrieved 23 November 2014.
  9. ↑ Wahito, Margaret (31 October 2014). "Equity Bank restructuring to form new holding company". Nairobi: 98.4 Capital FM . Retrieved 20 September 2018.
  10. ↑ "Winners Announced for African Banker Awards 2019 | Les gagnants pour les Trophées African Banker 2019". African Business. 13 June 2019. Retrieved 1 September 2021.
  11. ↑ "Equity rebrands in growth push". 8 December 2020. Retrieved 6 September 2021.
  12. ↑ Omondi, Dominic. "Equity Bank value crosses Sh1tr after Congo acquisition". The Standard. Retrieved 20 January 2022.
  13. ↑ Flood, Zoe (3 July 2014). "Kenya's Mobile Innovation Brings Digital Money Closer". BBC News . Retrieved 23 November 2014.
  14. ↑ "Equity Bank Branches | Equity Bank Branches Kenya | Branches Equity Bank Kenya". banks-kenya.com. Retrieved 20 May 2021.
  15. ↑ "Equity Appoints Veteran Insider for Managing Director Position | Equity Group Holdings" . Retrieved 6 September 2021.
  16. ↑ Abuya, Kenn (30 September 2020). "The Tale of Fraud Cases at Equity, and What the Bank is Doing About It". Techweez. Retrieved 27 June 2023.
  17. ↑ Onyango, Alfred (9 February 2023). "Equity Bank Asks Customers To Be Alert As Scammers Run Amork". The Star Kenya. Retrieved 27 June 2023.
  18. ↑ Mwende, Sharon (4 February 2023). "Relax, We've Dealt With Fraud Cases, Equity Bank Assures". The Star Kenya. Retrieved 27 June 2023.
  19. ↑ Abuya, Kenn (12 August 2020). "How Latest Eazzy Banking Update Shields Customers From Scammers". Techweez. Retrieved 27 June 2023.
  20. ↑ Ladu, Ismail (19 August 2021). "Bank customer spends months chasing her defrauded Shs21m". Daily Monitor. Retrieved 27 June 2023.
  21. ↑ Wafula, Paul (17 March 2016). "Equity Bank surrenders staff to KRA over fraud". The Standard. Retrieved 27 June 2023.
  22. ↑ Bujakera, Stanis; M’Bida, Aurélie (28 January 2021). "DRC's problems with Kenya's Equity Bank and James Mwangi". The Africa Report. Retrieved 27 June 2023.
  23. ↑ Kiplagat, Sam (15 May 2023). "Customer Sues Equity Bank for Data Breach Dispute". Business Daily. Retrieved 27 June 2023.
  24. ↑ Kimuyu, Hillary (17 April 2024). "How hackers stole Sh179 million from Equity Bank in seven days". Nairobi News. Retrieved 17 April 2024.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.