Equity Group Holdings has won a major reprieve in the Democratic Republic of Congo (DRC) after the country’s Senate approved changes to a rule that would have compelled the Kenyan lender to sell a 30 percent stake in its subsidiary to Congolese nationals.
The exemption shields Equity from a directive, known as Instruction 18, issued by the DRC’s central bank, Banque Centrale du Congo (BCC). The rule required banks to have at least four unrelated shareholders holding a minimum of 15 percent each by the end of 2026, and mandated that local shareholders control at least 45 percent of the bank.
For Equity, which owns 85.4 percent of its DRC unit, this meant selling stakes worth at least Sh42 billion, based on previous valuations. Rival KCB Group, with an 85 percent stake in Trust Merchant Bank SA (TMB), faced a similar sale worth about Sh8.86 billion.
“I’m pleased to share that we petitioned the Senate and the President, and the Senate responded favourably to our plea. The clause is now being amended, so we are no longer required to sell,” Equity Group CEO James Mwangi was quoted by Business Daily.
Both Kenyan lenders had argued that complying with the directive would be impractical for listed companies with foreign subsidiaries. Kenya itself has similar shareholding restrictions for banks but exempts listed lenders.
The DRC has emerged as Equity’s most profitable foreign market, outpacing Uganda, Rwanda, Tanzania and South Sudan. In the first half of 2025, Equity BCDC posted a 22 percent rise in net profit to Sh9.1 billion, contributing 27.3 percent of the Group’s pre-tax earnings. Overall, Equity Group recorded Sh33.3 billion in net profit, with regional subsidiaries contributing Sh13.9 billion.
Equity entered the DRC in 2015 through the acquisition of German lender ProCredit, later raising its stake to 94.3 percent. In 2020, it merged ProCredit with Banque Commerciale du Congo (BCDC) after acquiring a majority stake from the Forrest family, creating Equity BCDC. The bank later increased its holding to 85.4 percent in 2023 with a Sh9.24 billion purchase.
The exemption from Instruction 18 preserves Equity’s growth strategy in the DRC, a market of over 80 million people and vast mineral wealth and strengthens its ambition to reduce reliance on Kenya operations.
