Kenyan multimillionaire banker James Mwangi has seen the market value of his equity stake in Kenya’s leading bank, Equity Group Holdings, fall by Ksh862.71 million ($7.14 million) in the past seven weeks as investors on the Nairobi Securities Exchange sold down stakes in the group.
Mwangi, who has been instrumental in the development of Kenya’s financial services industry, owns a sizable 3.38-percent stake in Equity Group, a leading group that operates as the largest lender in East and Central Africa.
The drop in the market value of his stake follows a 12.68-percent decrease in the share price of the Nairobi-based financial services group from Ksh53.25 ($0.441) on Aug. 10 to Ksh46.5 ($0.385) at the time of writing.
At the close of trading on the Nairobi bourse on Sept. 28, Equity Group Holdings shares closed 32 basis points higher at Ksh46.5 ($0.385), bringing the group’s market capitalization on the local bourse above Ksh175 billion ($1.45 billion).
According to data tracked by Billionaires.Africa, Mwangi’s 3.38-percent stake in the leading financial services group has dropped in market value from Ksh6.74 billion ($55.84 million) on Aug. 10 to Ksh5.94 billion ($49.23 million) at the time of writing this report.
This translates to a total loss of Ksh862.71 million ($7.14 million) for the multimillionaire businessman, who is one of the richest investors on the Nairobi Securities Exchange and one of Kenya’s wealthiest men.
As part of efforts to expand its operations and diversify its earnings base, Equity Group has expressed interest in acquiring Spire Bank, a teachers-owned bank, in a deal that will see it integrate the financial services provider into its operations and put it on the path to stability after years of financial crisis.
The acquisition may present additional challenges and opportunities for Equity Group, which reported profits in excess of Ksh24 billion ($200 million) in the first half of 2022.
The half-year results reflect a continued digital transformation, with 99 percent of all customer transactions now taking place outside the branch network.
