Former PS Warns of Hidden Hand Behind Mwaura’s Sh1.6B HF Group Acquisition, Predicts Delisting

A former Permanent Secretary has raised serious concerns about the recent acquisition of a Sh1.6 billion stake in HF Group by former Kenya Revenue Authority (KRA) chairman Anthony Mwaura and his family, suggesting a senior politician may be the real power behind the controversial transaction.

Irungu Nyakera, a former Permanent Secretary, took to social media to warn Kenyans that the high-profile investment may not be what it appears on the surface. In a pointed post, Nyakera claimed that “Anthony Mwaura is not the buyer” and warned existing shareholders to consider selling their stakes before an anticipated delisting.

“If you own HF shares, buy more as the buyer will be making a full acquisition and delisting HF in not too long,” Nyakera cautioned, suggesting the transaction is part of a larger strategy to take the mortgage firm private.

The warning comes amid growing public scrutiny over how the Mwaura family managed to raise such substantial funds for the investment.

According to Business Daily reports, the family collectively purchased a 12.72 percent stake worth Sh1.6 billion through HF Group’s recent rights issue, making them the second-largest shareholder after Britam Holdings.

The breakdown shows Mwaura acquired 81.6 million shares worth Sh548.3 million through his company Toddy Civil Engineering, while his wife Rose Njeri secured a 4.21 percent stake worth Sh533.5 million through Effort Merchants.

Their daughter Susan Wanjiru obtained a 4.18 percent stake valued at Sh528 million under Janton Investments.

Nyakera’s allegations have added a new dimension to the controversy, with the former PS suggesting that Kenyans are being presented with a false narrative about the transaction’s true ownership structure.

Former PS Irungu Nyakera.

His reference to someone “selling you a dynasty vs hustlers narrative” appears to allude to Kenya’s recent political discourse while warning of potential manipulation.

The timing of the acquisition has raised eyebrows, coming just months after Mwaura was moved from his KRA chairmanship to head the Kenya Rural Roads Authority (KeRRA) in December 2024.

His tenure at KRA was marked by controversy, including court proceedings related to a Sh357 million embezzlement case involving Nairobi County Government, though he was later acquitted.

Public reaction has been swift and critical, with many Kenyans questioning the source of the family’s wealth on social media platforms.

The fact that Mwaura’s daughter, who holds no known major business position, could afford a half-billion shilling investment has particularly sparked debate about transparency in public service.

HF Group has been experiencing a remarkable turnaround, with its share price gaining 64.3 percent over the past six months to trade at Sh6.72 at the Nairobi Securities Exchange.

The company doubled its earnings to Sh524 million in 2024, making it an attractive investment target.

Despite the controversy, Mwaura has publicly stated that the investment represents a retirement plan and that he will not take an active role in HF Group’s management.

“I don’t know much about banking,” he told Business Daily, emphasizing his hands-off approach.

However, Nyakera’s warning about an impending full acquisition and delisting suggests the investment may be more strategic than initially presented.

If accurate, current shareholders could face a buyout scenario that would remove HF Group from public trading.

The Ethics and Anti-Corruption Commission has faced calls to investigate the transaction’s funding sources, though no formal probe has been announced.

As the debate continues, the controversy highlights growing public concern about wealth accumulation by former public officials and demands for greater transparency in Kenya’s corporate sector.

The unfolding situation serves as a test case for corporate governance and public accountability, with stakeholders watching closely to see whether regulatory bodies will respond to the mounting concerns about this high-stakes financial transaction.​​​​​​​​​​​​​​​​