Aga Khan IV's stake in Nairobi-based insurer Jubilee drops by $1.6 million

Feyisayo Ajayi -
Key Points
  • Aga Khan IV's stake in Jubilee Holdings dropped by $1.6 million amid a nearly 5% decline in the insurer's shares on the NSE.
  • Despite holding a 37.98% stake through the Aga Khan Fund, his investments decreased by Ksh213.35 million ($1.65 million) in 20 days.
  • Jubilee Holdings' stock price fell 4.53% this year, erasing earlier gains and resulting in an 11.76% year-to-date loss for shareholders.

Shah Karim al-Husayni (Aga Khan IV) has seen his stake in Jubilee Holdings, East Africa's top insurance provider, decrease by more than $1.6 million recently. This drop coincides with a nearly 5 percent decline in the insurer's shares on the Nairobi Securities Exchange (NSE), reflecting the volatility in the region's financial markets.

Through the Aga Khan Fund for Economic Development, Aga Khan IV holds a significant 37.98 percent stake in Jubilee Holdings, totaling 27,528,739 shares. Despite being a key investor on the NSE, his holdings have decreased by Ksh213.35 million ($1.65 million) in the past 20 days.

This downturn follows a substantial increase in his investment; between Sept. 16 and Oct. 15, the value of his indirect stake rose by $3.41 million, climbing from Ksh4.27 billion ($33.04 million) to Ksh4.71 billion ($36.45 million). The recent decline has reversed much of that gain, reducing his holdings to Ksh4.49 billion ($34.86 million).

Jubilee Holdings: East Africa's leading insurer

Founded in Mombasa, Jubilee Holdings was the first insurer in the region and has since evolved into East Africa's foremost insurance provider, serving over 1.9 million clients across Kenya, Uganda, Tanzania, Burundi, and Mauritius.

The company's strong market presence and history of growth have made it a staple for investors in the region, but the recent downturn raises concerns about its future performance and the broader economic landscape in East Africa.

Jubilee shares drop 4.53 percent

The decline in Jubilee' stock price is particularly striking. Shares of the company dropped from Ksh171 ($1.33) on Oct. 15 to Ksh163.25 ($1.27), representing a 4.53 percent loss for shareholders and pushing the company's market capitalization below $95 million.

This sharp decrease reflects broader market challenges and has led to a year-to-date loss for Jubilee Holdings that now stands at 11.76 percent on the NSE. The implications of this decline are significant for investors.

A $100,000 investment in Jubilee at the beginning of the year is now valued at just $88,240, indicating a loss of $11,760. This is a substantial setback for shareholders who had benefited from a rally in September, only to see those gains swiftly erased.