NAIROBI (Reuters) - Shareholders of Kenya's fast-growing Equity Bank approved on Friday the purchase of Uganda Microfinance Limited (UML) in an all-share deal worth 1.66 billion Kenya shillings.

"I declare the resolution (to buy UML) as passed. That is a milestone to our development," Equity chairman Peter Munga told sharholders at an Annual General Meeting in Nairobi.

Shareholder approval was the last hurdle to the deal, which is expected to go through by Monday, Equity officials said.

The Ugandan micro-financier will become a wholly-owned subsidiary of Equity. In exchange, its shareholders will acquire a 2.2 percent of Equity's shares.

Eight million additional ordinary shares will be issued to complete the deal, Equity officials said.

Equity is Kenya's third-largest company by market value, with a market capitalisation of more than 69 billion shillings.

It has a large customer base in low-income, rural areas.

Equity chief executive James Mwangi told reporters, after the AGM, that the bank was now looking to move into Rwanda and southern Sudan. But he did not give details.