Listed integrated financial solutions provider HF Group PLC has posted an appreciation of 120.84% in its stock in 2025, becoming the top gainer across banking counters at the Nairobi Securities Exchange (NSE) in 2025. HF Group is the only banking counter at the NSE that recorded gains in excess of 100% in 2025. The appreciation of the stock has been fueled by a combination of various factors, market sentiment and underlying financial performance.
A successful rights issue in 2024, a turnaround in financial performance in 2025, inclusion to the Morgan Stanley Frontier Markets Small Cap Index, an upgrade in core capital to KES 9.2B, as well as the upgrade of the banking unit (HFC Limited) to Tier II status have all resulted in positive market sentiment that has buoyed the counter at the Nairobi bourse. The Group also instituted its new Employee Share Ownership Plan (ESOP) in 2025 that is set to replace an older plan, a welcome development to the market given the rejuvenation and turnaround the Group is witnessing.
CMA Approval of HF Group’s New ESOP
In a notice on 4th December 2025, HF Group announced the issuance of 94,274,401 ordinary shares to the trustees of the HF Group PLC Employee Share Ownership Plan (ESOP). This is after the Capital Markets Authority Kenya (CMA) granted approval to HF Group on 27th November 2025 to issue and list the 94 million shares at a par value of KES 5.00. This action was in line with shareholder resolutions enacted on 28th May 2025 which authorised the Group to bring into formation the new ESOP plan, replacing the existing one that was enacted on 2nd July 2008.
HF Group Q3 2025 Results Summary
The Group posted a solid set of results for the first nine months of 2025, with key metrics improving considerably relative to the performance in the comparable period in the previous year. The asset base closed near KES 80 billion, which was a growth of 22% year-on-year, with the customer deposits rising by 21% to KES 55 billion. The loan book expanded marginally by 3% to KES 40B resulting in a loan-to-deposit ratio of 50%.
Across the income statement, there was a significant turnaround in profitability, with profit before tax surging past the KES 1 billion mark to reach KES 1.1 billion from KES 312 million in Q3 2024. This was a significant turnaround for the integrated financial solutions provider, with the effect translating to improvement in net income which was KES 988 million from KES 484 million in Q3 2024. The performance in Q3 2025 signals that the Group will register an improvement for the 2025 full year.
HF Group Meets Core Capital Requirements, Banking Unit Upgraded to Tier II
As at the end of Q3 2025, core capital was KES 9.2 billion, a massive improvement from KES 1.7 billion as at the end of Q3 2024. The Central Bank of Kenya (CBK) set the core capital requirement threshold at KES 3B by the end of 2025, KES 5 billion by the end of 2026, KES 6 billion by the end of 2027, KES 8 billion by the end of 2027, and KES 10 billion requirement by the end of 2029. At KES 9.2 Billion, HF is well above the KES 3 billion requirement at end of 2025 and KES 800 million shy of the KES 10 billion requirement.
The core capital to risk-weighed assets ratio was 21.9% which was significantly and comfortably above the 10.5% threshold set by the regulator, the Central Bank of Kenya. A notable development that also occurred in the year is the Group’s banking subsidiary – HFC Limited, was officially upgraded to a Tier II bank. This was on the back of growth in market share and a strengthened capital base, and the upgrade is set to boost the bank’s confidence in the market and position it for sustained growth.
Also Read: HF Group’s Earnings Signal a Turning Point for Kenya’s Banking Sector
