Kimani Ichung’wa ‘acquires’ HF Group shares worth Sh138.3 million

Kikuyu Member of Parliament who is also the Leader of Majority in parliament Kimani Ichung’wa has acquired a Sh138.3 million stake in mortgage financier HF Group (formerly Housing Finance). This stake is equivalent to some 18,642,043 shares.

Following this acquisition, Kimani Ichung’wa now holds a stake of one percent in the business. Speaking to the media, the member of parliament claims that he took a loan to finance the investment in the HF Group shares. He claimed that he was drawn to the counter due to the HF Group’s turnaround strategy and renewed profitability.

“Previously, the business focused heavily on property development which has slow returns. They have now shifted towards a more profitable model, especially retail banking which delivers quicker returns on equity,” said Ichung’wa.

Incidentally, the acquisition comes barely two months after revelations that the former Kenya Revenue Authority chair Anthony Mwaura had acquired a stake in the HF Group worth Sh1.6 billion. Mwaura made this acquisition through his nuclear family in a series of transactions that involved firms associated with himself, his wife and his daughter.

Mwaura bought 81.6 million shares through his firm Toddy Civil Engineering. These shares were equivalent to a 4.33 percent stake with an estimated market valuation of about Sh548.3 million.

His wife Rose Njeri on the other hand bought shares equivalent to a 4.21 percent stake worth Sh533.5 million while his daughter Susan Wanjiru owned a 4.18 percent stake worth Sh528 million. Njeri acquired the shares through the firm Effort Merchants while Wanjiru owns the shares through Janton Investments. These acquisitions were made through the HF Group rights issue that was held in 2024.

In total, the Mwaura family held 12.72 percent stake in the HF Group after the acquisitions. The family became the second largest shareholder, second only to Britam Holdings which controls a 48.17 percent stake in the business.

READ MORE: Former KRA chair Anthony Mwaura buys Sh1.6 billion stake in HF Group

“I was interested in HF because it is a good indigenous bank with good potential. The investment is a retirement plan. We are almost retiring and have to plan for the future,” Mwaura had said. His sentiments appear to now resonate with Ichung’wa.