Kenyan businessman Andrew Ndegwa’s stake in NCBA Group, a Nairobi-based financial services conglomerate, has increased by Ksh440 million ($3.63 million) in the past 90 days, as shares in the financial services group have increased by double digits.
Ndegwa, a Kenyan businessman and executive director of First Chartered Securities Limited, owns 4.3 percent of NCBA Group, making him one of the company’s largest shareholders.
As of press time on Oct. 17, shares in NCBA Group were trading at Ksh30.15 ($0.249) per share, 1.15-percent lower than their opening price on the local bourse as some market participants trimmed down their holdings in the firm after the shares surged above Ksh32 ($0.26).
Shares in the Nairobi-based financial services conglomerate have risen by 25.9 percent since July 19, rising from Ksh23.95 ($0.198) on July 19 to Ksh30.15 ($0.249) on Oct. 17, accruing millions of dollars in gains to the group’s shareholders.
As a result of the price increases, the market value of Ndegwa’s 4.3-percent stake in NCBA Group has increased by Ksh440 million ($3.63 million), from Ksh1.7 billion ($14.03 million) on July 19 to Ksh2.14 billion ($17.66 million) at the time of writing this report.
NCBA Group is a Nairobi-based financial services conglomerate that operates as a non-operating holding through its vast network of subsidiaries in Tanzania, Rwanda, Uganda, and Cote d’Ivoire.
The Kenyan banking firm, which has 109 branches in five countries including Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast, was founded in 2019 through the merger of NIC Bank Group and Commercial Bank of Africa Group.
It is led by the wealthy Kenyatta, Merali, and Ndegwa families. Earlier this year, the super-rich families received a total dividend of Ksh1.02 billion ($8.89 million) from their shareholdings in NCBA Group.
NCBA Group recently disclosed that it is in the process of spinning out its fintech unit, which includes M-Shwari, as part of its move to create a standalone company that will provide better digital banking services to its customers.
The decision to separate its fintech units comes on the heels of plans to build seven new branches by the end of the year, in line with its retail expansion objectives and branch growth program, which were introduced last year.
