Equity Group is venturing into health insurance by acquiring a subsidiary license, signaling its ambition to offer a more comprehensive suite of financial services. If approved, the license will allow Equity Health Insurance—the new arm of the group—to officially begin underwriting, adding to its existing life and general insurance portfolio.
This move builds on a string of transformative steps approved during the group’s 20th Annual General Meeting in June 2024. Shareholders greenlit the formation of Equity Group Insurance Holdings Limited and ratified the creation of Equity Health Insurance, a dedicated subsidiary for health coverage. The group will now operate under four clusters: Banking, Insurance, Technology, and Foundation.
Patrick Gatonga, the former CEO of AAR Insurance Holdings, was tapped in June to lead this new health insurance arm. Gatonga, who joined AAR in September 2022, brings deep sector expertise and is expected to spearhead Equity’s foray into medical underwriting—a space where traditional banks rarely operate.
At the same AGM, shareholders also approved the formation of a banking holding company to consolidate operations across Equity’s banking subsidiaries in Kenya, Uganda, Tanzania, South Sudan, Rwanda, and the DRC. The group’s insurance ambition is part of this broader regional consolidation strategy aimed at streamlining operations and unlocking synergies.
The expansion comes as Equity Group reported mixed first quarter 2025 results, with pretax profit declining 8% to 18.7 billion Kenyan shillings ($145.02 million) from 20.4 billion shillings in the same period last year. The group’s net interest income fell 12% to 13.32 billion shillings, highlighting the strategic importance of diversifying beyond traditional banking revenue streams into new growth areas like health insurance.
“We are now a systemic bank in East Africa,” said Equity Group CEO Dr. James Mwangi, highlighting the group’s resilience in navigating macroeconomic challenges and its long-term vision under the Africa Recovery and Resilience Plan (ARRP), which emphasises unlocking primary sectors like health and agriculture.
The insurance business has already shown strong momentum since its 2022 launch, posting a 27% rise in profit before tax to Kshs 414 million. More than 15 million policies have been issued—80% through digital channels—showing how the group’s tech-forward approach is fueling growth in new verticals.
Equity’s digital banking platforms remain core to its growth. In the first quarter of 2025, the Equity Mobile App and USSD channels processed nearly 40 million transactions worth Kshs 943 billion. Meanwhile, Equitel saw its volume soar to 92 million transactions. This reflects a deeper digital engagement as Equity increasingly bundles services across its ecosystem.
Financially, the group continues to perform strongly. Equity Bank reported a profit after tax of Kshs 15.4 billion in Q1 2025, with customer deposits growing 7% to Kshs 1.32 trillion and net loans up 3%. Liquidity and capital adequacy ratios remain well above regulatory thresholds, underscoring the group’s financial strength.
Also ratified during the AGM was the acquisition of Rwanda’s Cogebanque, making Equity Bank Rwanda the second-largest bank in the country with an 18% market share. In addition, the Equity Group Employee Share Ownership Programme (EGH ESOP) was approved, allocating 5% of the company’s share capital to staff—further positioning the group as a talent-driven organization.
This expansion into health insurance is a bold move. By bundling health, life, and general insurance with digital financial services, the group seeks to offer holistic financial security to millions of Africans, particularly in regions where healthcare financing remains fragmented.
It follows key changes, including a new business structure and the acquisition of Rwanda’s Cogebanque. As East Africa continues to show strong economic growth, this step could set a new pace for integrated financial services, with rivals like KCB and DTB Group likely to take note.
See Also: Clafiya launches HSAs to accelerate the future of healthcare financing in Africa
