Kenya’s wealthy Merali family suffers over $4-million loss from Sasini Tea stake

Timilehin Adejumobi -

Key Points:

  • Merali family’s Sasini Tea stake drops by Ksh523.46 million ($4.06 million) over three months amid broader market challenges.
  • Sasini Tea’s stock falls 14.8% from Ksh20.95 ($0.16) to Ksh17.85 ($0.14), with market cap slipping below $32 million.
  • Despite losses, Merali family retains a 65.46% stake in Sasini Tea, valued at $23.39 million

Kenya’s wealthy Merali family is grappling with a significant decline in the market value of their stake in Sasini Tea, marking a continuation of recent financial setbacks for the prominent agribusiness.

According to data tracked by Billionaire.Africa, the Merali family’s investment in Sasini Tea has plummeted by Ksh523.46 million ($4.06 million) over the past three months, reflecting broader challenges within the Nairobi-based company.

Market cap drops below $32 million amid 14-percent share decline

Sasini Tea, a renowned agribusiness company, maintains active operations across the country cultivating and processing tea, coffee, avocado, and macadamia nuts. The company also focuses on value-added production for both domestic and international markets.

The company’s financial performance for the first half of its 2024 fiscal year further reflects the challenging conditions. Sasini reported revenue of $22.88 million but faced a loss of Ksh37.67 million ($0.29 million), in stark contrast to a profit of Ksh122.11 million ($0.93 million) in the same period last year.

Sasini Tea’s stock has seen a significant 14.8-percent drop, from Ksh20.95 ($0.16) on May 7 to Ksh17.85 ($0.14). Consequently, the company’s market capitalization has fallen below $32 million, signaling a troubling trend for shareholders.

Merali family remains a key investor despite losses

The Merali family, Sasini’s largest shareholder, owns a 65.46 percent stake, equivalent to 168,856,800 shares valued at $23.39 million. This positions them among East Africa’s wealthiest families.

Sasini’s falling share price has reduced the Merali family’s stake by Ksh523.46 million ($4.06 million). Their holding dropped from Ksh3.54 billion ($27.45 million) on May 7 to Ksh3.01 billion ($23.39 million). Despite this decline, they remain prominent investors on the NSE.

Sasini Tea has faced negative returns in 2024, with shares down 10.75 percent year-to-date. A $100,000 investment at the start of the year would now be worth about $89,250, reflecting a $10,750 loss and highlighting the risks for investors.