Table of Contents
Key Points
- Merali family’s 65.46% stake in Sasini Tea lost $2.22 million in 21 days, driven by selling pressure on the Nairobi Securities Exchange.
- Sasini shares dropped 10.15% since Nov. 1, lowering its market cap below $27 million and the Merali family’s stake to $19.63 million.
- Year-to-date, Sasini's stock plunged 24.75% in local currency, while currency appreciation limited foreign investors’ losses to 8.97%.
The Merali family, one of Kenya’s wealthiest households and the largest shareholders of Sasini Tea, has experienced a sharp drop in the market value of their stake.
The family’s 65.46 percent stake in the agribusiness firm—equivalent to 168,856,800 ordinary shares—has declined by Ksh287.06 million ($2.22 million) in the past 21 days due to sustained selling pressure on the Nairobi Securities Exchange (NSE).
The latest slump deepens what has already been a difficult year for Sasini Tea. From Aug. 16 to Nov. 1, the Merali family saw the value of their stake slump by $1.9 million, as its market valuation fell from Ksh3.07 billion ($23.84 million) to Ksh2.83 billion ($21.95 million).
Sasini shares drop 10.15 percent, market cap below $27 million
Sasini Tea, a renowned agribusiness company, which cultivates and processes tea, coffee, avocado, and macadamia nuts for local and international markets, has seen its shares fall by 10.15 percent since Nov. 1.
Its stock price dropped from Ksh16.75 ($0.1296) to Ksh15.05 ($0.1176), dragging Sasini’s market capitalization below $27 million.
This latest decline has further impacted the Merali family’s stake, reducing its value to Ksh2.54 billion ($19.63 million) as of Nov. 22. Despite the losses, the Merali family remains among Kenya’s wealthiest investors and continues to hold a dominant position in the NSE's agribusiness sector.
Your Money and your Life
Sasini Tea investors have faced steep losses in 2024, with share price plunging 24.75 percent year-to-date in local currency. However, the appreciation of the Kenyan shilling has cushioned foreign investors, limiting their losses to 8.97 percent. A $100,000 investment at the start of the year is now valued at $91,029, translating to a $8,971 decline.
