Table of Contents
Key Points
- Merali family’s stake in Sasini Tea dropped by Ksh844.28 million ($1.95 million) in 2024, driven by selling pressure on the NSE.
- Kenyan shilling appreciation mitigated Sasini Tea’s dollar-denominated losses, reducing the Merali family’s stake decline to just 9.05% in dollar terms.
- Despite the market pressures, the Merali family remains a dominant player in Kenya’s agribusiness sector, with a 65.46% stake in Sasini Tea.
Kenyan business magnates and agribusiness investors, the Merali family, felt the impact of the challenging macroeconomic environment in 2024, with their stake in Sasini Tea experiencing a decline in value.
The appreciation of the Kenyan shilling helped cushion the dollar-denominated losses, highlighting the resilience of their portfolio despite market pressures. Although their stake declined, the family remains a key player in Kenya's agribusiness sector.
Currency gains cushion Sasini’s dollar slide
As the largest shareholders of agribusiness giant Sasini Tea, the Merali family holds a 65.46-percent stake, equivalent to 168,856,800 shares. In 2024, their shares dropped by $1.95 million due to sustained selling pressure on the Nairobi Securities Exchange (NSE). However, the Kenyan shilling’s sharp appreciation mitigated the impact of the losses in dollar terms.
Sasini Tea, a leading agribusiness firm specializing in tea, coffee, avocado, and macadamia nut production for local and international markets, faced a difficult year in 2024. Its share price on the Nairobi Securities Exchange fell from Ksh20 on Jan. 1, 2024, to Ksh15 by Dec. 31, 2024, reflecting a 25-percent drop in local currency.
Nonetheless, the Kenyan shilling’s appreciation softened the dollar-denominated losses, reducing the decline for investors. Adjusted for currency fluctuations, Sasini Tea’s shares dropped from $0.127 to $0.116, translating to a more modest 9.05 percent loss in dollar terms, which pulled the company’s market capitalization below $30 million.
Merali family loses $1.95 million
In local currency terms, the 25 percent drop in Sasini’s share price led to a substantial decrease in the market value of the Merali family’s stake, which fell from Ksh3.38 billion to Ksh2.53 billion, resulting in a loss of Ksh844.28 million. In dollar terms, the family’s 65.46 percent stake decreased from $21.56 million to $19.58 million, leading to a $1.95 million loss.
Sasini Tea’s performance in 2024 mirrors the 25 percent decline in local currency, driven by selling pressure on the Nairobi Securities Exchange. The strong appreciation of the Kenyan shilling softened this drop to just 9.05 percent in dollar terms. $100,000 investment in Sasini at the beginning of 2024 retained a value of $90,946 by Dec. 31, 2024, limiting the loss to $9,054.
