Kenyan tycoon John Kimani's stake in Kakuzi slumps by $3.39 million

Feyisayo Ajayi -

Key Points:

  • John Kimani’s stake in Kakuzi Plc has decreased by $3.39 million over the past 14 days due to declining investor interest.
  • Kakuzi’s shares have dropped 15.42% in two weeks, reducing its market cap to below $55 million and impacting major shareholders.
  • Despite recent losses, Kimani retains a diversified portfolio, with significant stakes in Centum Investments and Nation Media Group.

John Kimani, a leading Kenyan businessman, has witnessed a significant decline of over $3 million in his stake in Kakuzi Plc, an agricultural cultivation and manufacturing firm listed on the Nairobi Securities Exchange.

According to stock market data tracked by Billionaires.Africa, Kimani’s stake in Kakuzi has decreased by Ksh437.85 million ($3.39 million) over the past 14 days due to waning investor interest in the company’s shares.

Kakuzi’s performance amid market challenges

Kakuzi Plc is renowned for its high-quality agricultural products, including avocados, macadamia nuts, and passion fruits. The company is also involved in tea processing, cattle farming, and commercial forestry.

Despite a challenging operating environment, Kakuzi reported a 21.8 percent revenue surge in its 2023 annual report, climbing from Ksh4.43 billion ($33.65 million) in 2022 to Ksh5.4 billion ($41 million) in 2023, driven by its avocado business and supported by enhanced production and operational efficiencies.

Significant share price decline

Over the past 14 days, Kakuzi’s shares have dropped by 15.42 percent, falling from Ksh420 ($3.251) on June 13 to Ksh355.25 ($2.750). This decline has reduced its market capitalization to below $55 million, resulting in substantial losses for shareholders, including Kimani.

Kimani, a leading investor on the Nairobi Securities Exchange, holds a 34.54 percent stake in Kakuzi, equivalent to 6,762,133 ordinary shares. The recent drop in Kakuzi’s share price has led to a Ksh437.85 million ($3.39 million) decrease in the market value of his stake over the past two weeks, down from Ksh2.84 billion ($22.01 million) on June 13 to Ksh2.40 billion ($18.62 million).

Broader investment portfolio

Despite these financial setbacks, Kimani continues to maintain robust investments across various sectors. He holds a 5.21-percent stake in Centum Investments and a 3.86-percent stake in Nation Media Group, reinforcing his position as a key player in Kenya’s investment landscape.

Your Money and Your Life

Kakuzi Plc’s shares have fallen 7.73 percent YTD, prompting caution for potential investors. However, a $100,000 year-to-date investment would now be worth $112,000, reflecting a $12,000 gain.