Local investors reducing their holdings in select Nairobi Securities Exchange-listed companies have resulted in another financial setback for the family of the late Kenyan tycoon Naushad Merali. The market value of their Sasini Tea stake has plunged by nearly two million dollars due to a sharp decline in the shares of the leading agribusiness company.
According to data tracked by Billionaires.Africa, the Merali family has seen the market value of their shares in Sasini drop by Ksh298.68 million ($1.88 million) in the past nine days due to a sharp plunge in the shares of the company on the Nairobi Securities Exchange.
Sasini shares slump 9.09 percent, pushing market cap below $30 million
Kenyan agribusiness firm Sasini, known for its cultivation and processing of tea, coffee, avocado, and macadamia nuts, operates nationwide with a focus on value-added production for both local and global markets.
The Merali family, holding a majority 65.46-percent stake in the agribusiness firm valued at more than $23 million, ranks as Sasini’s largest shareholder. This stake positions the Merali family as one of the wealthiest in not just Kenya but across East Africa.
Despite its prominence, Sasini shares have experienced a challenging period in the last nine days. This downturn has resulted in significant losses for shareholders, including the Merali family—one of the richest investors on the local bourse.
Stock slump shaves nearly $1.9 million off Kenyan Merali family’s wealth
In the last nine days, Sasini’s stock has dropped more than nine percent, slipping from Ksh22 ($0.138) on Feb. 1 to Ksh20 ($0.126) today. This decline has pushed the company’s market capitalization below the $30 million threshold.
The recent 9.09-percent dip in Sasini’s shares translates to a Ksh298.68 million ($1.88 million) reduction in the family’s stake value. Their holdings have decreased from Ksh3.29 billion ($20.65 million) on Feb. 1 to Ksh2.99 billion ($18.77 million).
Despite this setback, the Kenyan Merali family remains one of the wealthiest in Kenya and East Africa. Their diverse investment portfolio includes a 5.2-percent stake in NCBA Group, a 35-percent stake in battery firm Eveready East Africa, and a 74-percent stake in tire distributor Sameer Africa.