Kenyan banker Gideon Muriuki gains $1 million as Co-operative Bank shares rebound

Kenyan banking magnate Gideon Muriuki has seen his net worth increase by $1 million in the past 128 days after losing millions from his stake in Nairobi-based financial services firm, Co-operative Bank Group, in the first six months of 2022.

The recent increase in the market value of his stake can be attributed to a sustained rise in the company’s share price on the Nairobi Securities Exchange, as investors on the local bourse continued to strategically acquire shares of undervalued companies.

Co-operative Bank Group is one of East Africa’s largest financial institutions. Its subsidiaries include Kingdom Securities Limited, Co-optrust Investment Services Limited, Co-operative Consultancy & Insurance Agency Limited, Kingdom Bank Limited, and Co-operative Bank of South Sudan.

Muriuki, Co-operative Bank Group’s CEO and managing director, owns a two-percent stake in the leading financial services group that serves as the primary banker for Kenya’s SACCOs.

Shares in Kenyan financial services groups were trading at Ksh11.8 ($0.0972) per share as of press time on Oct. 28, 42 basis points lower than their opening price on the Nairobi bourse.

Since June 22, exactly 128 days ago, the bank’s share price has increased by more than 10 percent, from Ksh10.7 ($0.088) to Ksh11.8 ($0.0972) at the time of writing this report, amid renewed buying interest among investors.

Muriuki’s stake in the leading financial services group has increased by Ksh112.8 million ($1 million) as a result of the recent surge in the bank’s shares, from Ksh1.097 billion ($9.03 million) to Ksh1.21 billion ($10.03 million) at the time of writing this report.

The increase in the group’s shares follows a 55-percent increase in profit in the first six months of 2022, from Ksh7.36 billion ($61.4 million) to Ksh11.47 billion ($95.7 million).

The group’s total assets across its subsidiaries increased from Ksh579.7 billion ($4.83 billion) to Ksh603.92 billion ($5.03 billion), while retained earnings increased from Ksh84.2 billion ($702.1 million) to Ksh95.53 billion ($796.6 million).