Adding to the significant losses suffered earlier in July, the Merali family, the family of the late Kenyan tycoon Naushad Merali, has faced another significant financial blow as the market value of their shares in Sasini Tea, a renowned agribusiness firm in Kenya, experienced a sharp decline.
According to data tracked by Billionaires.Africa, the Merali family’s stake in Sasini plummeted by Ksh689.29 million ($4.8 million) in just 18 days.
As the largest shareholders in Sasini, with a majority 65.46-percent stake, the Merali family has long been considered one of the wealthiest investors on the local bourse.
The company’s operations span Kenya, focusing on tea, coffee, avocado, and macadamia nut cultivation and processing, with value-added production catering to domestic and international markets. Additionally, Sasini operates tea warehousing facilities in Mombasa, a coastal city.
In recent times, Sasini on the Nairobi Securities Exchange has faced challenging market conditions, leading to substantial losses for its shareholders.
Over the past 18 days, the company’s share price has plummeted by more than 15 percent, dropping from Ksh29.00 ($0.2034) on July 14 to Ksh24.50 ($0.1718) at the time of reporting. This drastic decline has pushed Sasini’s market capitalization below the $50 million mark.
As a result of the sustained decline in the company’s shares, the Merali family’s stake in Sasini has suffered a significant reduction in value. In just 18 days, their holdings have declined from Ksh4.44 billion ($31.15 million) on July 14 to Ksh3.75 billion ($26.31 million) currently, representing a substantial loss of Ksh689.29 million ($4.8 million).
Despite the recent downturn in Sasini’s share price, the Kenyan Merali family remains one of the wealthiest families in the country, boasting an extensive investment portfolio that includes a 5.20-percent stake in NCBA Group, a 74.06-percent stake in tire distributor Sameer Africa, and a 35-percent stake in battery firm Eveready East Africa.
