Munga increases stake in Equity Group by over $1.2m

By InstinctBusiness Apr 30, 2025 0

Equity Group founder, Peter Munga, has made a strong return to the lender’s shareholder register, purchasing 3.64 million shares worth Sh166.2 million (over $1.2m) in the first quarter of 2025.

This marks a reversal of the longstanding trend of original shareholders gradually reducing their stakes in the bank since its listing on the Nairobi Securities Exchange in 2006.

According to the latest shareholder filings as of March 31, 2025, Mr Munga now directly holds 13.21 million Equity shares, valued at Sh603 million. This represents an increase from 9.57 million shares in December 2024, boosting his stake in the bank from 0.25 percent to 0.35 percent.

Mr Munga, who served as the bank’s chairman for 35 years before announcing his retirement in 2018, had seen his shareholding shrink from 15.42 million shares in 2018 to 9.57 million by the end of last year. His recent acquisition signals renewed confidence in the bank’s long-term prospects.

At the time of its listing in 2006, Mr Munga held a 3.2 percent stake in Equity, which evolved from a building society founded in 1984 to a fully-fledged commercial bank in 2004. Equity’s growth since then has been dramatic, with its valuation soaring from Sh6.3 billion at listing to Sh172.3 billion today—a 27-fold increase.

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Over the years, early investors such as the late co-founder John Kagema and the family of the late Nelson Muguku have gradually offloaded their stakes, realising substantial capital gains. CEO James Mwangi has also reduced his directly held stake from 5.37 percent in 2008 to 3.39 percent to comply with regulatory ownership limits for executive directors.

Equity now has over 3.77 billion issued shares, up from 90.5 million before listing, following multiple bonus issues and a 10-for-1 share split in 2009. Its 2024 net profit stood at Sh46.5 billion, nearly 62 times the Sh753.3 million reported in 2006, supported by aggressive regional expansion and a strong retail banking model.