James Mwangi, one of Kenya’s wealthiest investors, suffered a significant value loss in the first quarter of 2022 from his stake in Equity Group Holdings, Kenya’s largest financial services group, as investors remained bearish on the Nairobi Exchange despite companies reporting higher earnings at the end of 2021.
Mwangi, who has played an important role in the development of Kenya’s financial services industry, owns a significant 3.38-percent stake in Equity Group, a leading group that operates as the largest lender in East and Central Africa.
In the first quarter of 2022, which ended on March 31, the Kenyan businessman and multimillionaire investor lost Ksh460.11 million ($4 million) on his equity stake in Equity Group, as the lender’s shares fell by a single-digit percentage.
The drop in the market value of his stake comes despite the group’s impressive financial performance at the end of 2021 when it reported a record-high profit of Ksh40.1 billion ($350.2 billion), which is 99-percent higher than the Ksh20.1 billion ($175.5 million) it posted in 2020.
According to data obtained from the Nairobi Stock Exchange, the bank’s stocks fell from a price of Ksh52.75 ($0.458) on Jan. 1 to Ksh49.15 ($0.426) on Mar. 31, resulting in a total 6.8-percent loss for shareholders as investors reduced their holdings in Equity Group.
As a result of the price slump, the market value of Mwangi’s stake fell by Ksh460.11 million ($4 million) during the first quarter of 2022, from Ksh6.74 billion ($58.5 million) to Ksh6.28 billion ($54.5 million).
Despite the drop in the value of his stake, the Kenyan multimillionaire banker expects to receive $3.35 million in dividends from Equity Group Holdings.
Mwangi will receive a $3.35-million dividend from the group’s retained earnings of approximately Ksh146.78 billion ($1.28 billion) as part of the cash distribution approved by the board of directors.
