Having a bank account and access to bank services (i.e. savings and borrowings) is taken for granted in middle and high income countries. These services are not available in large parts of Africa, where millions of people continue to be excluded from the banking system. Kenya’s Equity Bank is helping to bridge this gap.

Equity Bank was established in 1982 as a building society to serve the ‘unbanked’ and to provide products and services that economically empower its customers. Equity Bank opens around 3,000 new accounts each day and is now the largest bank in the East African in terms of customer base with 3.4m account holders in Kenya and Uganda. The company is also one of Kenya’s largest corporate tax payers and is listed on the Kenyan stock exchange.

Equity Bank’s success is rooted in its focus on market need and it is widely considered to be a global leader in microfinance. The loan products include a diverse range and are targeted to specific needs including SME loans, microfinance and agribusiness loans.

Equity Bank has been able to grow profitably due to the large volumes of business services provided through its expanding branch network. It has won numerous awards for innovation and service delivery including Best Microfinance Institution in Africa 2007 by Micro Capital and Best Kenyan Bank 2007 and 2008 by Euromoney.

Helios Investors LP Fund I (“Helios”) has provided a cash injection for further growth for Equity Bank, in particular for regional expansion and consolidation with other microfinance institutions. Equity Bank recently acquired Ugandan Microfinance Ltd, a microfinance Institution in Uganda, and has opened a branch in Southern Sudan and is considering opportunities elsewhere in Africa.

Technology as well as product innovation and delivery are key to Equity Bank business model. Millions of rural customers are provided with access to banking services through “Eazzy Banking”, a mobile phone based service which allows customers to make a range of basic transactions such as balance enquiries, transfers to nominated equity bank accounts and bill payment without having to go to a branch. Full service banking is made available to rural communities through a fleet of 50 mobile banking vans which regularly travel to remote areas.

Equity Bank works with partners to develop products tailored to the specific needs of the poor and previously un-served markets such as:

• Kenya Cooperative Creameries to provide loans to farmers for the purchase of quality dairy cattle to help improve milk yields. Loans are repaid with proceeds from guaranteed forecast milk sales committed with Kenyan cooperative creameries.
• The United Nations Development Programme (UNDP) to promote women in business and to develop loans suited specifically to the needs of women entrepreneurs.

Equity Bank takes Corporate Social Responsibility very seriously and is involved in a variety of community projects. In education, the bank provides university scholarships for top students in all the districts where the bank operates. In Health, Equity bank has invested in a program aimed at reducing the spread of HIV/AIDS, drugs and substance abuse.

1  From year-end 2008, except when otherwise stated.
2  US$ 50.7m invested by Helios. CDC investment in Helios Investors LP Fund I is US$50m; total fund size is US$304m.
3 2007-2008.