Kenya Insights

Tag: Anthony Mwaura

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

    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.
    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.​​​​​​​​​​​​​​​​

  • Rocking KRA From Within: Board Chair Anthony Mwaura Accused Of Abuse Of Office And Awarding Himself Sh380M In Tax Waivers

    Rocking KRA From Within: Board Chair Anthony Mwaura Accused Of Abuse Of Office And Awarding Himself Sh380M In Tax Waivers

    A senior Manager at the Kenya Revenue Authority has revealed how she was sacked after she refused to grant preferential treatment to children of Chairman Antony Mwaura during an auction of cars at the Port of Mombasa.

    Ms Rosemary Njeri Mureithi, a former Chief Manager of Kilindini Port in Mombasa, alleges that she was fired in August last year after refusing to implement an order by Mwaura to allocate auction cars and tyres to his children through a private treaty.

    In the petition filed at the Employment and Labour Relations Court at Milimani, the former Manager alleges that turning down this request later proved costly to her.

    “I told them the request was not reasonable and procedural as the auction was governed by a legal and regulatory framework as established by the East African Customs Management Act 2010…contravening the foregoing would trigger legal consequences against the respondent (KRA),” she says in an affidavit filed in court.

    Ms Mureithi has sued KRA demanding compensation for illegal sacking, accrued gross income of Sh6.9 million and gratuity of 9.4 million.

    The KRA has denied the claims stating that Ms Mureithi will be put to strict proof of the same,’’ KRA says in response.

    The taxman says her sacking was done lawfully and that Ms Mureithi consented to the said terms and conditions of service, which she signed on September 22, 2022.

    She said she was barely seven months into her new role as Chief Manager of Kilindini Port in Mombasa when, on May 31 2023 her employer terminated her contract without any prior indication that she had breached any of her contractual obligations.

    Her lawyer, Kubo Mwakichako, says she wrote to KRA about a month later appealing the decision to terminate her employment but the employer wrote back confirming and upholding the sacking on August 11, 2023.

    Mr Mwakichako said before that, Ms Mureithi rights to access the KRA operating system were deactivated on February 23, 2023 and was subsequently placed on a three months compulsory leave.

    He said Ms Mureithi further recalled being visited by Mr Mwaura’s two children and another person. She allegedly explained to them the procedures of an auction.

    The children allegedly sought to be given preferential treatment by not participating in the auction, so that they could purchase the cars and tyres through private treaty.

    According to the former Manager, the Commissioner, Customs and Border Control Department acknowledged the conduct of the auction after it fetched substantial revenue for the KRA.

    But a few days later, Mr Mwaura allegedly visited her office at the Mombasa Port where he complained that the auctions being conducted by the staff including myself were a sham and he allegedly threatened to take relevant action “From the foregoing, it’s clear that my termination by the respondent was occasioned by strict adherence to rules and procedures governing a public auction that was under my control,’’ she said, maintaining that she believed that she lost her job for refusing to grant the favours sought.