Kenyan investment firm Centum Investment Plc, controlled by Robert Kirubi and Mary-Ann Musangi, heirs to the late tycoon Chris Kirubi’s business empire, reported an annualized return of over $3.7 million or 33 percent from its strategic Eurobond investments in the year ending March 2023.
The Kenyan firm, controlled by the family of late tycoon, diversified its investment portfolio by buying $11.5 million worth of Eurobonds at a time when global interest rates were surging, and the value of African Eurobonds was relatively low.
The investment, which primarily consisted of a mix of Egyptian and Kenyan dollar-denominated debt, yielded an average yield to maturity of 13.96 percent, presenting an enticing opportunity for Centum to bolster its returns.
Centum CEO James Mworia highlighted the favorable acquisition, as the company purchased Eurobonds at a steep discount, paying an average of 72 cents to the dollar. This tactical move positioned Centum to realize substantial gains when the Eurobond positions were exited at the close of the financial year.
The impact of the Eurobond gains was evident in Centum’s investment income, which surged by 28 percent to Ksh2.13 billion ($14.9 million) in the year to March 2023.
Despite the impressive performance of its investment portfolio, the company’s total assets declined to Ksh36.9 billion ($258.7 million), down from Ksh42.7 billion ($299.4 million) the previous year. The net loss widened to Ksh7.3 billion ($51.2 million), primarily attributed to impairment provisions on its Two Rivers Development and higher financing costs.
Centum Investment, renowned for its investments in real estate and private equity assets in various sectors, continues to thrive under the leadership of Kirubi’s children, Robert Kirubi and Mary-Ann Musangi. The duo now holds a 31-percent stake in Centum Investment.
The siblings inherited 80 percent of their father’s fortune, which included significant stakes in KCB Group, Haco Industries, Bendor Estate Limited, and other businesses.
