Wealthy Kenyan businessman Andrew Ndegwa loses more than $1 million in 87 days

Kenyan businessman and senior banking executive Andrew Ndegwa has lost nearly $1 million over the past 87 days due to a decline in his stake in NCBA Group.

The dip in the market value of Ndegwa’s stake, amounting to $1.17 million, can be attributed to a single-digit percent drop in NCBA Group’s shares as wary investors reduced their positions in the Nairobi-based financial services conglomerate.

NCBA Group, a prominent player in the financial services sector, maintains a strong presence in Kenya, Tanzania, Rwanda, Uganda, and Côte d’Ivoire.

As a director on the board of the financial services giant, Andrew Ndegwa holds a significant 4.3-percent stake in NCBA Group, cementing his position as one of the richest investors on the Nairobi Securities Exchange and one of Kenya’s richest individuals.

Since April 27, the bank’s share price has fallen by 5.75 percent, declining from Ksh40.9 ($0.287) to Ksh38.55 ($0.272), pushing the bank’s market capitalization below $450 million, and ranking it as the seventh most capitalized company on the Nairobi Exchange.

With the recent price decline, the market value of Ndegwa’s 4.3-percent stake in NCBA Group has fallen from Ksh2.9 billion ($20.42 million) on April 27 to Ksh2.73 billion ($19.25 million) on July 23, amounting to a loss of Ksh166.64 million ($1.17 million).

Despite this financial setback, it’s important to note that Ndegwa remains one of Kenya’s wealthiest investors and ranks as one of the country’s richest businessmen.

In a similar vein, his brother James Ndegwa, the former head of Kenya’s capital markets authority, has also experienced a decline in his NCBA Group stake, witnessing a loss of $1.12 million during the same period. The occurrence further underscores the challenges faced by investors in leading financial services groups in recent times.