Kenyan businessman Peter Munga, the outgoing chairman of Equity Bank, is set to receive a $500,000 ‘Thank You’ token from the Bank where he has served as chairman for the past 35 years.
The headquarters of Equity Group Holdings Ltd. stand in Nairobi, Kenya, on Monday, Aug. 22, 2016. Photographer: Riccardo Gangale/Bloomberg © 2016 BLOOMBERG FINANCE LP
The sendoff package was revealed in a notice for the bank’s AGM which is scheduled for April 30 in Nairobi.
“Payment of a one-off gratuity of Sh50 million to the outgoing founder and chairman, Peter Kahara Munga, in consideration of his length of service, commitment and dedication to the company which spans over 35 years,” reads one of the special resolutions to be voted on at the shareholders’ meeting.
If approved, the amount, which translates to roughly $500,000, will be the largest publicly disclosed exit pay package to have been awarded by an NSE-listed company.
Last June, Equity Bank, which is Kenya’s second largest bank by Market capitalization, announced that Munga had opted to retire as Chairman of the board of the bank after a 35-year stint. He will be replaced by the bank’s Vice Chairman, David Ansell.
One of Kenya’s most respected businessmen, Peter Munga, 76, is the founder of Equity Building Society, the microfinance bank that eventually became Equity Bank, one of East Africa’s largest financial institutions. He previously owned as much as 3.2% in the publicly traded company, but has since sold off most of his shares and now owns just about 0.4% of the bank – a stake currently valued at $5 million. Munga is also a major shareholder in East African insurer Britam Holdings and Equatorial Nut Processors. His Peter Munga Foundation works to reduce hunger and poverty in rural Kenya by promoting sustainable agriculture, development of local markets and encouragement of innovation and entrepreneurship, in order to increase food productivity, security and availability.