Former Kenya Revenue Authority (KRA) chair Anthony Mwaura, his spouse and daughter bought a Sh1.6 billion stake in HF Group, making the family the second-largest shareholder of the listed mortgage firm.
Mr Mwaura, through Toddy Civil Engineering, purchased 81.6 million shares or 4.33 percent of the bank currently worth Sh548.3 million via HF's rights issue, which altered the lender's top ownership list.
His wife, Rose Njeri, through Effort Merchants, received a 4.21 percent stake worth Sh533.5 million, and daughter Susan Wanjiru owns a 4.18 percent stake under Janton investments worth Sh528 million, says HF's latest annual report.
This brings the family's combined ownership to a 12.72 percent stake worth Sh1.6 billion, making it the second-largest shareholder behind Britam Holdings, with a 48.17 percent ownership.
The family of Mr Mwaura, now chair of Kenya Rural Roads Authority (KeRRA), bought the mega shares in last year’s rights issues through which the mortgage firm raised Sh6.4 billion in an oversubscribed cash call.
HF’s top 10 shareholder roll has six new entrants with a combined ownership of 26.86 percent spread between 4.1 percent and 5.7 percent stakes.
The ownership shifts emerged as the mortgage firm’s turnaround gained momentum after years of losses, and a surge in the firm's share price at the Nairobi Securities Exchange (NSE).
HF is the top performing bank at the Nairobi bourse, having gained 64.3 percent over the past six months to Sh6.72, ahead of Cooperative Bank (24.1 percent), Absa Group (22.7 percent) and Stanbic (20.7 percent)
"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," Mr Mwaura told the Business Daily.
Mr Mwaura, 59, served as KRA chair for two years before he was moved to his current position as chairman of KeRRA in December.
The surge in HF shares has the Mwaura family book a gain of Sh627 million over the past six months, outpacing the stock market.
The lender turned a Sh265 million profit in 2022 after years of losses and doubled its earnings to Sh524 million in 2024.
Mr Mwaura made his money in the construction sector on the back of his civil engineering firm Toddy.
Besides the KeRRA chair, other new entrants in the bank's top 10 shareholder ranking are Wizpro Enterprises Limited and Acini Invest As Limited, with 79,533,165 shares each worth Sh534 million.
The chair of Kenya Tea Development Agency Management Service firm, Solomon Muriithi Main, who owns Wizpro, says filings at the Business Registration Service (BRS)—the State-owned firm, which is the sole custodian of a list of all companies.
Mr Maina also owns 24.2 percent of Sidian Bank through Wizpro.
He spent Sh326 million last year on a Sidian Bank's rights issue that lifted his ownership in the lender from 18.27 percent.
Acini Invest As Limited also has a single director, Geoffrey Ajiki, who owns a low-cost driving school, Acini Driving School, with operations in Elgeyo Marakwet and Murang'a.
The investors are betting on explosive population growth, a surge in urbanisation and a rising middle class to boost the property market after decades of underinvestment in housing.
This is expected to boost HF profits and its share at the bourse on increased demand for mortgages.
HF is also expected to benefit from the government's push to construct thousands of affordable homes over the next five years in efforts to narrow a shortfall.
Mr Mwaura has ruled out taking up an active role in the HF in the wake of his significant shareholding.
"I will not be taking an active role. I don't know much about banking," said Mr Mwaura in a phone interview.
"We have young capable people who can do great, we only need to give them an opportunity," he added about HF's management team under CEO Robert Kibaara.
The top 10 shareholders of HF now own 73.32 percent, up from 58.31 percent in 2023.
The rights issue, surge in profits and the jump in share price at the Nairobi bourse saw HF added to the Morgan Stanley Capital International Frontier Markets Small Cap Index in February this year.
The index serves as a key performance indicator for tracking firms in emerging markets, notably for foreign investors.
HF Group's net profit for quarter one rose 2.2 times to Sh327.93 million on increased lending.
"We continue to realise the impact of our transformation journey. Our business model has evolved significantly, enabling us to deliver sustainable growth and value to our shareholders," said Mr Kibaara earlier.
Further, the successful rights issue, which was oversubscribed by 38 percent, has enhanced our capital position, allowing us to power growth as we innovate to meet customer needs."
