Kenyatta family’s stake in NCBA Group suffers $11.26-million decline in 2023

The Kenyatta family, Kenya’s leading landowners, enjoyed a $21-million increase in their equity holdings in NCBA Group last year but have since experienced a significant slump in the market value of their holdings in the Nairobi-based bank.

According to data tracked by Billionaires.Africa, the market value of the Kenyatta family’s equity holdings in NCBA Group has decreased by Ksh1.54 billion ($11.26 million) since the start of the year, triggered by the recent sell-off in the lender’s shares on the Nairobi Securities Exchange.

NCBA Group is a Nairobi-based financial services conglomerate with operations in Tanzania, Rwanda, Uganda, and Cote d’Ivoire. It was established in 2019 through the merger of NIC Bank Group and Commercial Bank of Africa Group and is partially owned by the Kenyatta, Merali, and Ndegwa families.

The Kenyatta family owns a 13.2-percent stake in NCBA Group, a total of 217,497,023 ordinary shares, through their late father’s estate, Jomo Kenyatta.

The bank’s stock price has declined by more than 18 percent since the start of the year, from Ksh39.35 ($0.2869) on Jan. 1 to Ksh32.25 ($0.235) at the time of writing, pushing the group’s market capitalization below $400 million.

As a result of the recent slump in its share price, the market value of the stake held by the Kenyatta family in NCBA Group has decreased by Ksh1.54 billion ($11.26 million) since the year began from Ksh8.56 billion ($62.4 million) on Jan. 1 to Ksh7.014 billion ($51.44 million) at the time of writing.

Despite the recent sell-off, NCBA shares were trading at Ksh32.25 ($0.235) at the time of drafting this report, which is 2.71-percent higher than their opening price on the Nairobi Securities Exchange today. Its market capitalization is R53.1 billion ($387.3 million), making the lender the seventh most valuable company on the local bourse.

The Kenyatta family’s equity holdings in NCBA Group represent a significant portion of their wealth. Despite the recent slump, the family remains one of Kenya’s richest and most influential, with interests in real estate, banking, and agriculture.

The recent slump in the market value of the Kenyatta family’s equity holdings in NCBA Group underscores the volatility of the stock market and the risks associated with equity investments. As a result, investors are advised to exercise caution when investing in equities and to seek professional advice before making any investment decisions.