Wealthy Kenyan tycoon Andrew Ndegwa loses over $2 million in 49 days

Yusuf Abdulfatai -

Kenyan businessman and senior banking executive Andrew Ndegwa has lost more than $2 million over the past 49 days from his stake in NCBA Group.

The more than $2-million loss in the market value of Ndegwa’s stake can be attributed to a double-digit percent drop in NCBA Group’s shares as wary investors reduced their positions in the Nairobi-based financial services conglomerate.

Data gathered by Billionaires.Africa revealed that Ndegwa’s stake in NCBA Group has declined by Ksh339.70 million ($2.30 million) since Aug. 4 as investors on the local bourse continue to reduce their stakes 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 Cote d’Ivoire.

As a director on the board of the financial services giant, Ndegwa holds a significant 4.63-percent stake in NCBA Group, translating to 76,336,855 ordinary shares, cementing his position as one of the richest investors on the Nairobi Securities Exchange and one of Kenya’s richest individuals.

Since Aug. 4, the bank’s share price has fallen by 10.67 percent, declining from Ksh41.70 ($0.2827) to Ksh37.25 ($0.2526), pushing the bank’s market capitalization below $420 million and ranking it as the eighth 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 Ksh3.18 billion ($21.58 million) on Aug. 4 to Ksh2.84 billion ($19.28 million) on September 22, amounting to a loss of Ksh339.70 million ($2.30 million).

Despite this financial setback, 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 4.57-percent NCBA Group stake, amounting to 75,282,277 ordinary shares, witnessing a loss of $2.27 million during the same period.