In a significant strategic move, the Ndegwa family, heirs of the late Kenyan banking tycoon Philip Ndegwa, has solidified their position in NCBA Group, a prominent financial services conglomerate in Kenya.
Through their investment vehicle, First Chartered Securities, the Ndegwa family has acquired an additional 31.6 million shares of the Nairobi-based lender, valued at Ksh1 billion ($7.2 million).
The transaction not only reinforces their bullish stance on NCBA but also propels them to the top of the bank’s shareholder list, surpassing the Jomo Kenyatta family, which owns a 13.2-percent stake in the Kenyan group.
According to NCBA Group’s recent annual report, the Ndegwa family now holds a 14.44-percent stake in the financial institution, equivalent to Ksh8.07 billion ($58.35 million).
This increased ownership is a testament to their unwavering confidence in the institution, further building upon their substantial capital injections since the merger of NIC Bank Group and Commercial Bank of Africa Group in 2019.
NCBA Group, a non-operating holding company, boasts an extensive network of subsidiaries in Tanzania, Rwanda, Uganda, and Côte d’Ivoire.
With 109 branches spread across these countries, including Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast, the group has established itself as a formidable force in the financial services sector.
The recent share acquisition not only bolsters the Ndegwa family’s holdings through First Chartered Securities but also contributes to the personal portfolios of NCBA directors and brothers James and Andrew Ndegwa.
James Ndegwa now possesses a 4.57-percent stake in the group, valued at K2.55 billion ($18.43 million), while Andrew Ndegwa’s ownership has increased to 4.63 percent, valued at Ksh2.59 billion ($18.73 million).
Collectively, their portfolio has grown by Ksh377.8 million ($2.73 million) to reach Ksh5.14 billion ($37.2 million).
These acquisitions align with NCBA Group’s impressive financial performance in 2022, as it delivered a 34.7-percent increase in its profit. As a result, its profit during the period under review surged from Ksh10.22 billion ($77.25 million) in 2021 to Ksh13.78 billion ($104.1 million) in 2022.
