The Equity Group has withdrawn its recommendation of a Ksh. 9.5 billion dividend payout to its shareholders. The bank cited the need to conserve funds as the Covid-19 pandemic takes a toll on the economy.
With this move, Equity becomes the latest bank to withhold dividends after NCBA Group and Stanchart did the same. However, it will be the first time that they will not be paying dividends since they listed in the NSE in 2006.
According to the board, they are continuing to evaluate the potential impact of the pandemic on the Group and to formulate and implement strategic plans to mitigate any effects.
Dr. James Mwangi, the Group CEO and Managing Director, had this to say, “The Equity Group Holdings Board took a conservative approach that recognizes the emerging unquantified risk of the pandemic and opted to preserve capital in the face of the prevailing uncertainty. A strong capital and liquidity position gives us the strength and capacity to cushion our business and accommodate and walk with our customers during these challenging times.”