Equity Bank enters Kenya mortgage market

Nairobi - The bank and its largest institutional investor, British American Investments Group BAIC, have tentatively agreed with the CDC Plc to transfer the shares in a private treaty subject to regulatory approval.

Equity Bank has sent out a cautionary notice to its shareholders last week notifying them of the intention to acquire the CDC shares. The details of the financial transaction have not been disclosed.

Equity CEO James Mwangi said the breakthrough deal is consistent with the bank's growth strategy of diversifying its offering to its over 1.4 million customers and hailed the deal as a vindication of the emergence of Kenyan-owned and Kenyan-run businesses.

“Our goal has always been to deliver value to Kenyans by availing to them innovative financial services and products at affordable prices. Our partnership with Housing Finance, Kenya's premier mortgage finance company will deliver this goal to millions customers- most them low income farmers and entrepreneurs,” said Mwangi.

The tentative agreement to buy the CDC stake (Housing Finance oldest anchor shareholder) is subject to approval by CMA, CBK and the NSE. If approved, this transaction will see the Equity/BAIC axis become anchor shareholders in the premier mortgage financier.