Kenyan banking magnate Gideon Muriuki has recorded a significant boost in his net worth in recent times, with his stake in Co-operative Bank Group (Co-op Bank) increasing in value by $1.4 million in the last six months.
Co-op Bank is a financial services group based in Nairobi and is one of the largest financial organizations in East Africa.
It has several subsidiaries, including Kingdom Securities Limited, Co-op Trust Investment Services Limited, Co-operative Consultancy & Insurance Agency Limited, Kingdom Bank Limited, and the Co-operative Bank of South Sudan. Muriuki derives the majority of his wealth from his two-percent stake in Co-op Bank.
The increase in the market value of Muriuki’s stake can be attributed to the recent surge in Co-op Bank’s shares on the Nairobi Stock Exchange. The share price has increased by 15.9 percent since June 22, pushing the bank’s market capitalization above Ksh70.4 billion ($572 million).
This increase in share price has led to a Ksh174.3-million ($1.41 million) increase in the market value of Muriuki’s stake in Co-op Bank, which has risen from Ksh1.1 billion ($8.91 million) to Ksh1.27 billion ($10.32 million).
The increase in Co-op Bank’s share price was likely due to the impressive financial results published at the end of the first nine months of its 2022 fiscal year. According to the results, the bank’s profits rose by 47 percent from the previous year, reaching Ksh17 billion ($140 million). This increase was driven by increases in both interest and non-interest income.
As a result of the strong financial performance, the bank’s total assets increased by more than five percent to Ksh622.1 billion ($5.1 billion), and shareholder funds rose by more than 6.2 percent to Ksh100.9 billion ($827.1 million).
Despite losing millions of dollars in the first half of 2022, Muriuki has been able to recoup his losses thanks to the recent success of Co-op Bank. The bank’s strong financial results and increase in share price have led to a significant increase in the value of Muriuki’s stake in the company.