Yes, there is no reason this shouldn't apply to groups, but is that the simplest explanation that fits the facts? The more parsimonious explanation is that genes (being the primary mechanism of propagating traits between generations) are the unit of replication, and closely-related kin have much higher gene similarity than arbitrarily-sized groups (due to the mutation/genetic drift that occurs all the time). Natural selection can only operate on replicators, and genetic replicators only create kin. These replicators may influence group formation and their subsequent natural selection, but is there any evidence for that hypothesis that isn't suitably explained by kin selection?