Kenyan banking magnate Jimnah Mbaru loses $2.4 million from investment in Britam

Kenyan banking magnate Jimnah Mbaru has recorded a year-to-date loss of Ksh292.2 million ($2.46 million) from his investment in Britam Holdings, a Nairobi-based investment holding.

Britam Holdings is a diversified financial service and investment group with operations in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi that span East and Southern Africa.

In addition to its broad financial asset holdings, the group offers a variety of financial products and services in insurance, asset management, banking, and property. It has a well-diversified property portfolio including shopping malls, hospitality, housing, student housing, and offices.

Mbaru, the chairman of Dyer and Blair Investment Bank and a seasoned investment banker, owns a significant 7.72-percent stake in Britam Holdings, amounting to 194,800,100 ordinary shares.

For the first time since he began amassing shares, the market value of his stake in Britam has dropped below $10 million, as investors continue to reduce their exposure to risky assets, particularly equities, as part of a move to preserve wealth and channel capital into investments and assets that can serve as a hedge against inflation.

According to Nairobi Securities Exchange data, shares in the Nairobi-based investment holding  fell from Ksh7.5 ($0.0633) on Jan. 1 to Ksh6 ($0.0506) on July 21, resulting in a 20-percent loss for shareholders.

The market value of Mbaru’s 7.72-percent stake has fallen by Ksh292.2 million ($2.46 million) as a result of the 20-percent drop in Britam share price, from Ksh1.46 billion ($12.32 million) at the start of this year to Ksh1.17 billion ($9.85 million) at the time of writing this report.

Despite the $1-million year-to-date drop in Britam shares, Mbaru remains one of the Nairobi Securities Exchange’s wealthiest investors.