Kenyan tycoon Baloobhai Patel boosts bank holdings with 5 million shares in Absa Kenya

In a strategic move aimed at solidifying his investments in the financial services industry, Kenyan multimillionaire tycoon Baloobhai Patel acquired an additional 5 million shares in Absa Bank Kenya Plc in 2022, according to the group’s annual financial results.

This latest acquisition has further boosted Patel’s stake in the bank, positioning him as one of Kenya’s leading investors and business people.

The figures revealed in Absa Bank Kenya’s financial report indicate that Baloobhai Patel’s stake has risen from 42.5 million shares, equivalent to 0.78 percent, in 2021 to 47.5 million shares, representing 0.88 percent, by the end of 2022.

This strategic move aligns with Patel’s succession plans as he consolidates his stakes in publicly listed companies under his investment holding company, Aksaya Investment.

The current market value of Absa Bank Kenya shares stands at Ksh11.7 ($0.0833), resulting in a market capitalization of Ksh63.5 billion ($452.1 million) for the bank.

With Baloobhai Patel’s improved shareholding, amounting to a total stake of 0.88 percent in Absa Bank Kenya, his share value reaches Ksh558.8 million ($3.97 million).

In addition to acquiring Absa Bank Kenya shares, Patel strengthened his position in the financial services industry by purchasing 14.6 million Co-operative Bank (Co-op Bank) shares earlier this year.

This places him as the second-largest individual shareholder in the bank, trailing behind Gideon Muriuki, a prominent business executive with a two-percent stake in the financial services group.

Furthermore, as part of his succession plan, Patel recently transferred his 21-percent stake in Sanlam Kenya, valued at Ksh226 million ($1.62 million), to his investment holding company, Aksaya Investment. This follows the earlier transfer of his 4.12-percent stake in Bamburi Cement.