Rohan Patel, a Kenyan businessman and executive, is one of the many Kenyan investors who have seen the market value of their investments in publicly traded companies sink by millions of dollars as of late. The dropping investment valuations come as investors sell down stakes in risky assets in response to the central bank’s decision to tighten the money supply to combat inflation.
According to data obtained by Billionaires.Africa, Patel’s stake in Sanlam Kenya, a Kenyan insurance, investment, and retirement group, has decreased in value by a total of Ksh146.58 million ($1.22 million) in the past 135 days, or nearly five months.
Patel, the director of corporate development at Sanlam Kenya, owns a significant 20.7-percent stake in the Kenyan insurer, totaling 29,913,267 ordinary shares.
Sanlam Kenya, a subsidiary of the Sanlam Group, a South African financial services conglomerate, has an estimated market share of six percent in the Kenyan life insurance industry, serving more than 78,000 policyholders under individual life insurance and over 235,000 under group life insurance.
At the time of writing this report on Sept. 23, shares in the Kenyan insurer were trading at Ksh10 ($0.083) per share, 0.99-percent lower than their opening price on the Nairobi Securities Exchange this morning.
Salam Kenya’s stock on the Nairobi bourse has dropped by more than 32 percent in the past 135 days, nearly five months, as a result of the sustained sell-off of shares among investors as market participants continue to channel their funds into risk-free investments to preserve wealth.
The drop in the share price from Ksh14.9 ($0.124) to Ksh10 ($0.083) in the past 135 days has cost shareholders millions of dollars, including Patel, who sits on the board and owns 20.7 percent of the insurer.
The market value of Patel’s stake has dropped by Ksh146.58 million ($1.22 million) as a result of the recent price drop, from Ksh445.71 million ($3.7 million) on May 11 to Ksh299.13 million ($2.48 million) at the time of writing.
