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Kenyan investment banker Jimnah Mbaru has seen his stake in Britam Holding Plc, one of the country’s largest diversified financial services groups, surge by $1 million in 42 days.
The gains are the result of an upward trend in the group’s shares on the Nairobi Stock Exchange, as high investor demands for value stocks drove up prices on the local bourse.
Britam Holding is a leading diversified financial services group in Kenya, with a market capitalization of about $170 million (Ksh18.3 billion).
Mbaru, the group’s director and a former director of the Nairobi Securities Exchange, holds a total equity stake of 194,800,100 ordinary shares in Britam Holding.
His stake in the group makes him the single largest individual shareholder.
Britam Holding has grown into a top player in the financial services sector, with decades of experience offering financial products and services to clients in Kenya and East Africa.
The group operates subsidiaries in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi. It offers asset management, life assurance, retirement planning, general insurance, health insurance, banking and property insurance.
Britam Holding had losses of $90 million (Ksh9.7 billion) in 2020, compared to a profit of $43 million (Ksh4.6 billion) the previous year. It suffered a fair valuation loss of $21 million (Ksh2.3 billion) due to poor equity performance and another $18.5 million (Ksh2.0 billion) related to property impairments.
An unfavorable operating climate also adversely impacted its investment in HF Group Plc, resulting in losses. Britam Holding’s investment in HF Group contributed to a loss of about 7.6 million (Ksh823 million), as well as a $5.5-million (Ksh603 million) reduction in its investment value.
Despite the company’s poor financial performance in 2020, its shares increased from $0.062 (Ksh6.70) on April 29 when its results were released to $0.067 (Ksh7.26) at the opening of the market on June 11.
The gains in the company’s shares have seen Mbaru’s stake surge by $1 million (Ksh 110 million).
Its market value has increased from $12.1 million (Ksh1.31 billion) on April 29 to $13.1 million (Ksh1.41 billion) at the opening of the market today.
