John Ngumi: How I Earned Ksh 415 Million In 5 Months

John Ngumi is the executive director of Eagle Africa Capital Partners, a corporate finance advisory and patient capital investing firm.

On Wednesday, April 19, he appeared before the joint sitting of the National Assembly committees investigating the acquisition of Telkom Kenya.

Ngumi was put to task to explain how he was paid Ksh 415 million in five months to the government’s Ksh 6 billion buyout of Telkom.

Here is the story as told by WoK.

According to a report on Nation, Ngumu was paid Ksh 415 million for his role as an advisor in the government’s acquisition of Telkom Kenya.

He earned the money between April 1, 2022 when the  government kicked off the acquisition process and September 2022 when it was concluded.

Speaking before the committee, Ngumu explained that he earned the money due to his vast experience in the business industry.

“I was paid the money because I was the best in the business. They valued the advice I gave them and it was a willing buyer willing seller,” he said.

While taking pride in the revival of companies while working with a UK firm, he noted that he deserved to be paid $10 million.

“…I had already helped Helios revive a company that was on its deathbed. They valued my advice against taking legal action against the Government of Kenya. It wasn’t me imposing a fee on them,” Ngumi stated.

In August 2022, the government paid Helios Investors Ksh 6.2 billion through Jamhuri Holdinga Limited without the approval of the National Assembly.

John Ngumi

After completing his studies, Ngumu started his career in the banking industry as a trainee at Westminster Bank, London for three years.

In 1983, he came back to Kenya when there was a revolution in the country’s banking industry which had previously been a preserve for the British. 

At the time Kenya Commercial Bank (CBK), previously named Grindlays, was the largest bank and operated as a merchant bank.

He approached the financial institution for a job and was among the team that raised funds for the Kiambere dam. 

In 1985, John Ngumi: was employed by Citibank as the head of its then new Capital Markets Unit.

Four years later, he joined Barclays Bank whose major focus was financing real estates.

They helped the institution finance Unga House, Nation Center, Nairobi Shopping mall and The Windsor. 

In 1994, he partnered with others and started Loita Capital Partners Group, which was made up of Loita Asset Management (LAM) and Loita Capital Partners Limited.

Their aim was to create the first indigenous investment bank.

They built a name for themselves and even played an integral part in placing the first ever bond at the Nairobi Securities Exchange (NSE).

They were also appointed to work with the Central Bank of Kenya in structuring a Treasury Bond Program. 

Everything was going well for Loita Capital when it all came tumbling down. Their costs and revenues failed to match since expenditure was very high.

Ngumi lost a lot as big dailies advertised the auctioning his properties and he experienced massive losses. 

After the failure, he went back to employment. John Ngumi was employed at Citibank in the Corporate Finance Unit.

He has also worked as a top member in various top corporates and parastatals. 

Ngumi has served as the chairman of ICDC (Industrial and Commercial Development Corporation), Kenya Airways, Kenya Ports Authority, Kenya Pipeline Company and Kenya Railways Corporation.

He also served as Safaricom chairman until January 2023 when he resigned, only six months after joining the company.

Ngumi holds a degree in Philosophy, Politics and Economics from St. Peter’s College, Oxford University, United Kingdom.