In a recent announcement, Equity Group Holdings CEO Dr. James Mwangi addressed the company’s decision to lay off nearly 200 employees following a significant financial loss. The layoffs were the result of a comprehensive conduct audit initiated after the bank reported a Ksh.1.5 billion loss, underscoring the institution’s commitment to integrity and customer trust.
Zero Tolerance for Misconduct
Dr. Mwangi emphasized the bank’s unwavering stance on ethical conduct. “We have zero tolerance on anybody who is conflicted,” he stated, highlighting that the layoffs were a necessary step to maintain the bank’s standards and protect its customers. He urged clients not to compromise staff, noting that any such actions could jeopardize employees’ positions.
To further enhance transparency and accountability, Equity Group plans to introduce a toll-free number, allowing customers to report any concerns regarding staff conduct. This initiative aims to ensure that clients receive uninterrupted and ethical service.
Financial Performance and Regional Challenges
During the first quarter of 2025, Equity Group reported earnings of Ksh.15.4 billion, a decline attributed to high inflation and currency depreciation in South Sudan. Despite these challenges, customer deposits increased by 7% to Ksh.1.32 trillion, and credit disbursement rose by 3% to Ksh.804.7 billion.
The Kenyan operations demonstrated resilience, contributing significantly to the group’s growth metrics. However, the bank continues to grapple with high levels of non-performing loans, particularly in the corporate and MSME sectors.
Commitment to Employee Welfare
Equity Group has consistently prioritized its employees’ well-being. In 2024, the bank granted staff 5% of its total shares, valued at Ksh.10 billion, through an Employee Share Ownership Scheme (ESOP). This move aimed to align employees’ interests with the company’s long-term goals and recognize their contributions during challenging economic times.
Dr. Mwangi highlighted the importance of creating a supportive environment for employees, noting that the bank offers competitive salaries, comprehensive health insurance, and robust pension contributions. These benefits are part of Equity’s strategy to attract and retain top talent, ensuring the bank’s continued success.
Looking Ahead
Despite recent setbacks, Equity Group CEO Dr. Mwangi remains optimistic about Equity Group’s future. He believes that the bank’s strong governance framework, customer-centric approach, and commitment to ethical practices will drive long-term growth and stability.
Equity Group’s proactive measures, including the recent layoffs and planned customer feedback mechanisms, reflect its dedication to maintaining high standards and fostering trust among its stakeholders.
Conclusion
Equity Group Holdings’ recent actions underscore its commitment to integrity, customer service, and employee welfare. Under Dr. James Mwangi’s leadership, the bank continues to navigate challenges with transparency and a focus on long-term success.
