Equity Group founder Peter Munga. Photo | courtesy.
Equity Bank founder Peter Munga has made a surprise return to the lender’s shareholder register in a show of renewed confidence in the bank’s long-term trajectory, acquiring 3.64 million shares worth Sh166.2 million in the first quarter of 2025.
The purchase, Munga’s first since retiring as board chairman in 2018, lifts his direct stake from 0.25 percent to 0.35 percent, bringing his total holding to 13.21 million shares valued at Sh603 million as of March 31.
This move marks a reversal from the steady divestment seen among Equity’s founding investors over the years, as the bank transitioned from a building society in Kangema to a regional banking powerhouse.
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Munga, now 82, is credited with founding Equity Building Society in 1984 with just Sh5,000 and five employees. His decision to recruit James Mwangi in the 1990s helped steer the then-insolvent institution into a turnaround that would reshape Kenya’s banking landscape.
Rejecting conventional urban banking models, Munga and Mwangi brought financial services to the grassroots, ultimately transforming Equity into Kenya’s largest retail bank and a continental success story.
His latest investment comes as global institutional investors are deepening their exposure to Equity Group. The International Finance Corporation (IFC), Norfund, and Dutch development financier Arise B.V. are among the major players increasing their stakes in recent years, citing the bank’s strong fundamentals and inclusive banking model.
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Since its listing on the Nairobi Securities Exchange in 2006, Equity’s market capitalization has grown from Sh6.3 billion to Sh172.3 billion, while its net earnings surged from Sh753 million to Sh46.5 billion in 2024. The bank’s strong dividend history, aggressive digital transformation, and regional expansion have made it a favorite among retail and institutional investors.
Munga’s return, against the backdrop of regulatory caps on insider shareholding that saw Mwangi reduce his own stake from 5.37 percent in 2008 to 3.39 percent, signals growing faith in Equity’s pan-African growth strategy. His increased holding contrasts with the long-running exit of other founding shareholders, including the late John Kagema and the Muguku family, who offloaded shares to pursue other investments.
