BK Group Plc is set to launch a private equity fund worth between $30 million and $40 million following shareholder approval during its Annual General Meeting held on May 9. The fund, aimed at supporting small and medium enterprises (SMEs) in Rwanda through equity investment rather than traditional loans, reflects a strategic shift by the financial services group towards more direct participation in private sector growth. The move follows a profitable year for the group, with 2024 financials supporting a Rwf 29.34 dividend per ordinary share, including Rwf 10.32 paid as an interim dividend in December. The remaining payout is expected around July 1. Shareholders also approved other key items, including changes to the group’s insurance structure and board appointments. ALSO READ: BK Group declares Rwf27 billion dividend payout According to Dr. Uzziel Ndagijimana, BK Group CEO, the private equity fund is a response to the growing financing needs of Rwandan small and medium-sized enterprises, adding that while BK groups has long offered loans, there has been a clear gap when it comes to equity investment, something the new fund is specifically designed to address. “We’re seeing strong demand from SMEs not just for credit, but for capital, and with this fund, we’re going beyond loans to inject equity directly into businesses so they can grow, create jobs, and contribute more meaningfully to the economy,” he noted. He also added that BK is entering the space with a partner experienced in managing such funds, giving the initiative both credibility and operational strength. ALSO READ: BK Group CEO bullish on 2024 business outlook On the dividend payout, Dr. Ndagijimana said the board proposed the distribution based on the group’s strong performance in 2024. The approved dividend is set at Rwf 29.34 per ordinary share, which will be paid in July. “It is our responsibility to return value to shareholders in line with the profits achieved last year,” he said. In addition to the approval of the private equity fund and the 2024 dividend, shareholders at BK Group's AGM also endorsed a restructuring of the company’s insurance operations. A major move was the green light to create a new insurance holding company, “InsureCo,” which will bring together BK General Insurance and Sonarwa General Insurance, while Sonarwa Life Assurance will also operate under the new group structure. This merger, pending regulatory approval, aims to streamline operations and build a more competitive insurance arm within the BK portfolio. ALSO READ: BK Group’s net profit grew 25% in 2023 Some shareholders expressed satisfaction with the group's performance and their returns. Solange Nyiratunga, a shareholder, explained that the dividend and the company's growth had tangible benefits for those invested. “When there’s a profit, it helps us plan for the future. It feels good to receive those messages knowing that you earned something,” she said. Alphonse Gacamumakuba, a businessman from Kinyinya and also a BK shareholder, urged others to consider joining BK as shareholders, because he has seen the value of his investments steadily increase. “My shares grow every day, and if you're able to invest more, you stand to gain even more. BK has helped many of us achieve things I couldn’t on my own. They are playing a real role in Rwanda’s development.” The BK Group plc Annual General Meeting also saw the reappointment of Ernst & Young as external auditors for the 2025 financial year, reaffirming the group's commitment to continuity and audit oversight.
