HFCB staff have joined the list of the bank's top 10 shareholders following the allocation of a Sh1 billion stake under an employee share ownership plan (Esop), which has diluted the holdings of existing shareholders.
The bank's employees now collectively hold 94.36 million shares, according to regulatory filings for May 2026.
The shares represent a 4.77 percent stake, making employees the fifth-largest shareholders in the listed mortgage lender.
Their rise among the bank's largest shareholders follows the allocation of 94.27 million shares under a new Esop approved last year. HFCB previously operated an employee share scheme that was wound up last year after staff acquired 878,593 shares at a discounted price.
HFCB shares closed at Sh10.85 on Wednesday, valuing the employees' stake at about Sh1 billion.
The Capital Markets Authority approved the listing of the shares on the Nairobi Securities Exchange in December last year. Their issuance diluted the stake of HFCB's largest shareholder, Britam Holdings, to 45.6 per cent from 48.18 percent.
Other shareholders affected by the dilution include the family of Kenya Rural Roads Authority chairman Anthony Mwaura, whose combined stake fell to 12.12 percent from 12.72 percent.
"The shares will be allotted to the Esop under the company's incentive programme and in accordance with the Esop Trust Deed," HFCB said when seeking shareholder approval for the scheme.
"Such shares will be issued to eligible employees for such consideration and on such terms as are established in the Esop Trust Deed and Rules."
The shares will be allocated to employees based on individual performance ratings as part of efforts to retain talent within the organisation.
The board has approval to allocate the Esop shares in phases over a five-year period, provided that the scheme's holding does not exceed five percent of the company's issued share capital at any one time.
