National Assembly Majority Leader Kimani Ichung’wah who has acquired a significant stake at Housing Finance Group.
National Assembly Majority Leader Kimani Ichung’wah has acquired a significant stake in listed mortgage lender Housing Finance Group (HF), positioning himself to benefit from the country’s fast-growing housing sector.
Regulatory filings show the Kikuyu MP bought 18,642,043 shares in HF from the open market, valued at Sh138.3 million. The transaction gives him a one percent stake in the integrated financial services provider, making him the latest high-profile entrant to HF’s shareholder register.
Kenya Rural Roads Authority chairman Anthony Mwaura.
Mr Ichung’wah revealed he took out a loan to finance the purchase, citing the company’s turnaround strategy and renewed profitability as key attractions.
“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,” he said in an interview. His entry into HF follows that of former Kenya Revenue Authority chair Anthony Mwaura, who, together with his spouse and daughter, controls a 12.72 percent stake worth Sh1.6 billion. Mr Mwaura, now chair of the Kenya Rural Roads Authority, is HF’s second-largest shareholder after Britam Holdings, which holds 48.17 percent.
National Assembly Majority Leader Kimani Ichung’wah.
Both Mr Ichung’wah and Mr Mwaura are close allies of President William Ruto, whose affordable housing agenda is expected to drive demand in the mortgage market. Mr Mwaura previously chaired the United Democratic Alliance’s National Elections Board, overseeing the campaign that propelled President Ruto to State House.
The Mwaura family’s ownership in HF was through Toddy Civil Engineering, Effort Merchants and Janton Investments. Regulatory filings show the shareholding of Toddy Civil Engineering and Janton Investments has since been moved to nominee accounts under Nomura Nominees—structures that allow discreet ownership.
Earlier this year, Mr Ichung’wah disclosed in an Al Jazeera interview that his net worth is around Sh1 billion. The 47-year-old lawmaker entered politics in 2013 and is now serving his third term as Kikuyu MP. He signalled his intention to grow his HF investment.
HF’s share price has risen 77.3 per cent in the past 12 months, currently trading at Sh7.42. Other recent investors include Wizpro Enterprises Limited and Acini Invest As Limited, each holding 79,533,165 shares worth Sh534 million. Wizpro Enterprises is owned by Solomon Muriithi Maina, chair of the Kenya Tea Development Agency Management Services and a 24.2 per cent shareholder in Sidian Bank. Mr Muriithi is reportedly eyeing the Mathira parliamentary seat.
Acini Invest As Limited is owned by Geoffrey Ajiki, who operates the Acini Driving School in Elgeyo Marakwet and Murang’a counties. The school has partnered with the Kiharu Constituency Development Fund, led by MP Ndindi Nyoro. Other notable individual shareholders include M-Pesa CEO Lopokoiyit Sitoyo (0.8 per cent stake), former Britam Holdings CEO Benson Wairegi (0.37 per cent), and Naivas Supermarkets associate David Kimani Mukuha (0.13 per cent).
HF is well positioned to benefit from the government’s target to construct thousands of affordable housing units over the next five years. The policy is expected to drive mortgage uptake in a market where home loans have historically been limited to high-income earners due to the steep cost of housing.
After years of losses, HF posted a Sh256 million profit in 2022 and doubled earnings to Sh524 million in 2024. Last year, the lender’s rights issue was oversubscribed by 38 per cent, strengthening its capital base for expansion.
The group’s net profit for the first quarter of 2024 rose 2.2 times to Sh327.93 million on the back of increased lending. HF is yet to release its half-year results.
