NAIROBI, June 27 (Reuters) - Shareholders of Kenya's fast-growing Equity Bank <EQTY.NR> approved the purchase of Uganda Microfinance Ltd (UML) in an all-share deal worth 1.66 billion Kenya shillings ($26 million).

"I declare the resolution (to buy UML) as passed. That is a milestone to our development," Equity chairman Peter Munga told the company's annual shareholders' meeting in Nairobi on Friday.

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 new 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 the bank was looking to move into Rwanda and southern Sudan, but gave no details. (Reporting by Duncan Miriri; Writing by Andrew Cawthorne; Editing by David Holmes)