Wealthy Kenyan Ndegwa family suffers over $3-million loss in single day

The Ndegwa family, heirs to the late Kenyan banking magnate Philip Ndegwa, suffered a substantial loss of more than $3 million in just one day due to a sharp drop in the leading lender’s share price on the Nairobi Securities Exchange on Wednesday, Aug. 23.

According to data tracked by Billionaires.Africa, the market value of NCBA shares controlled by the Kenyan multimillionaire Ndegwa family slumped by Ksh541.53 million ($3.7 million) in a single day as wary investors reduced their holdings in the Nairobi-based financial services conglomerate.

NCBA Group is a Nairobi-based financial services conglomerate that operates as a holding company through its extensive network of subsidiaries in Tanzania, Rwanda, Uganda, and Cote d’Ivoire. Boasting 109 branches across these nations, the group has established itself as a formidable financial service force.

The Ndegwa family, which was involved in the merger of NIC Bank Group and Commercial Bank of Africa Group in 2018, owns a significant 14.94 percent stake in the leading lender through their investment vehicle, First Chartered Securities. Their stake in NCBA Group amounts to a total of 246.15 million shares.

The bank’s shares have fallen by 5.71 percent, declining from Ksh38.55 ($0.266) at the opening of the Nairobi Securities Exchange today, Wed., Aug. 23, to Ksh36.35 ($0.25) at the close of the local exchange this afternoon, pushing the bank’s market capitalization below $60 billion, and ranking it as the eighth most capitalized company on the Nairobi Exchange.

As a result of the recent slump in the company’s shares, the market value of the family’s stake has decreased from Ksh9.49 billion ($65.56 million) to Ksh8.95 billion ($61.82 million) at the time of writing this report.

This amounts to a Ksh541.53 million ($3.7 million) loss for the multimillionaire Ndegwa family in just a single day.