Zarin Merali, widow of late Kenyan businessman Naushad Merali, has gained Ksh214 million ($1.9 million) from her late husband’s stake in NCBA Group, as shares in the group rose by nine percent in 27 days.
The gains in her stake can be attributed to buying pressure on the Nairobi Stock Exchange that drove the share price higher, as investors reacted swiftly to news of the group’s financial results in the first half of 2021.
NCBA Group Plc is a Nairobi-based financial services conglomerate with operations in East and West Africa.
Aside from its operations in Kenya, the leading financial services provider functions as a non-operating holding through the operations of its network of subsidiaries in Tanzania, Rwanda, Uganda and Cote d’Ivoire.
Naushad Merali, who founded the Kenyan mobile service provider Kencell in 2003, held a 5.9-percent stake in NCBA Group through Yana Investments Limited prior to his death on July 3.
Zarin Merali now controls this stake.
In the first half of 2021, the Kenya-based financial services conglomerate reported 77-percent growth in its profit from Ksh2.8 billion ($25.9 million) in the first half of 2020 to Ksh5.1 billion ($46.0 million) on the back of triple-digit growth in interest and non-interest earnings.
The double-digit growth in profit spurred investors to acquire additional stakes in the group, leading to a rise in its share price on the Nairobi bourse.
As of press time, 9:35 AM (UTC), Sept. 9, shares in NCBA Group were trading at Ksh27.30 per share, nearly nine-percent higher than its closing price on Aug. 12.
As a result of the appreciation, the market value of Merali’s stake in the group has increased from Ksh2.4 billion ($22.2 million) on Aug. 12 to Ksh2.7 billion ($24.1 million) on Sept. 8.
This translates to a gain of Ksh214 million ($1.9 million) for the widow of the late Kenyan businessman.
