Peter Munga reclaims Equity Group stake with $1.3 million new shares

Key Points

• Peter Munga returns to Equity Group, acquiring shares worth Ksh166.2 million ($1.3 million), boosting his stake to 13.21 million shares.
• Despite recent financial setbacks, Munga doubles down on the bank he co-founded, signaling renewed confidence in Equity Group’s long-term prospects.
• Equity Group remains dominant, reporting a Ksh48.82 billion ($377.41 million) profit in 2024, with return on equity above 20%.

Kenyan banking pioneer and Equity Group Holdings co-founder Peter Munga has made a notable return to the institution he helped build, acquiring shares worth Ksh166.2 million ($1.3 million) in Equity Group. The move boosts his direct stake in East Africa’s largest lender at a time when the bank continues to post strong results and maintain its market dominance.

Ex-chair backs Equity Group again

Munga’s decision to reinvest in Equity marks a milestone for the ex-chairman, who stepped down in 2018 after decades at the helm. It reflects a renewed sense of confidence in the bank’s leadership and future, as well as a reaffirmation of the institution’s values and long-term vision.

He purchased 3.64 million additional shares, raising his holding from 9.57 million shares at the end of 2024 to 13.21 million. That stake is now valued at about Ksh603 million ($4.66 million), placing him among the bank’s top individual investors.

The move comes despite Munga recently facing financial headwinds, including a failed court effort to halt the auction of his Britam shares over a Ksh433.76 million ($3.35 million) loan default. Still, his fresh investment in Equity sends a clear message—he’s not stepping away. On the contrary, he’s doubling down on the institution he co-founded and helped grow from a modest rural lender into a household name.

A legacy rooted in rural Kenya

In 1984, Munga founded what was then the Equity Building Society with just Ksh5,000 ($100), aiming to offer credit to underserved rural communities. A pivotal moment came in 1993 when he brought in a young accountant, James Mwangi, whose leadership helped transform EBS into Equity Bank by 2004 and eventually into Equity Group Holdings, a regional banking force.

Together, they steered the bank into six African markets and grew its customer base to nearly 20 million. Today, Equity stands as a symbol of inclusive banking in Africa, with a story that began in rural Kenya and now stretches across the continent.

Munga’s return is happening alongside continued strong performance from Equity Group under long-serving CEO James Mwangi. For the year ended December 31, 2024, the bank reported a net profit of Ksh48.82 billion ($377.41 million), up 11.63 percent.

Return on equity held firm at over 20 percent, while total assets dipped slightly by 0.92 percent to Ksh1.8 trillion ($13.95 billion), keeping Equity firmly in its position as the region’s most valuable bank, with a market cap of $1.33 billion. His renewed interest in the bank is also a reflection of a legacy that began over four decades ago. 

Peter Munga’s legacy grows through new investment

Munga’s influence extends far beyond banking. He holds a 0.35 percent stake in Britam Holdings and played a key role in securing a $48 million investment from Swiss Re in 2018, a deal that strengthened Britam’s balance sheet.

His business interests also span agriculture, education, insurance, and manufacturing, with stakes in companies like Equatorial Nut Processors, Kakuzi PLC, HF Group, Pioneer International University, and Freshco Seeds.

His latest investment in Equity Group is more than a numbers game. It’s a return to his roots, a gesture of belief in Kenya’s banking sector, and a statement of support for the institution that shaped his legacy, and continues to shape the region’s financial future.