Kenyan billionaires are increasingly leveraging their financial clout to challenge corporate giants in court, marking a significant trend in the nation’s business landscape.
These individuals wield substantial stakes in companies listed on the Nairobi Securities Exchange (NSE) and are not afraid to assert their rights against larger multinationals.
This shift towards activism among Kenya’s elite not only reflects their growing influence but also underscores a broader demand for accountability and fairness in corporate dealings.
Ngugi Kiuna
Kiuna has been contesting the proposed acquisition of BOC Kenya by Carbacid, but the Capital Markets Authority (CMA) Tribunal may have hindered his efforts last week by ruling that all necessary disclosures in the buyout proposal were adequately met.
Although he has the option to appeal to the High Court, Kiuna had previously opposed the takeover, which commenced in November 2020, contending that the capital markets regulator made an error in approving the acquisition by overlooking the undervaluation of the target company, in which he possesses an 11.2 percent stake.
Carbacid, along with its affiliate Aksaya Investments LLP, has proposed to acquire 100 percent of BOC Kenya at Ksh 63.5 per share, amounting to a total of Ksh 1.2 billion.
Dyer and Blair Investment Bank, the independent advisor engaged by the BOC Kenya board, indicated that the offer significantly undervalued the company, which had a per share valuation of Ksh 91.76 as of early 2021.
Joel Kibe
Kibe, the sixth largest shareholder in Old Mutual Plc, is seeking a court order to compel the parent company, Old Mutual East Africa Holdings, to either buy him out at a premium or initiate the winding up of the insurance entity, thereby enabling him to liquidate his shares.
He informed the court that Old Mutual had previously committed to listing UAP’s shares on the Nairobi stock exchange within a two-year timeframe, which would facilitate an exit for investors.
Kibe also expressed concerns regarding Old Mutual’s issuance of preference shares, arguing that this action has resulted in a nearly 40 percent dilution of minority shareholders’ interests.
Additionally, Kibe raised objections to several other actions taken by Old Mutual, including the acquisition of loans without the involvement of minority shareholders and the disposal of assets without adequate disclosure.
Joe Wanjui and Wainaina Kenyanjui
When Unilever, the British multinational that holds a majority stake in Limuru Tea, sought to divest its shares to the American investment firm CVC Capital Partners, Wanjui and Kenyanjui mounted a vigorous opposition, ultimately resulting in the regulatory authorities blocking the transaction.
Concurrently, Kenyanjui, the sole proprietor of Africa Reit, sought representation on the board of the publicly listed company.
The two minority shareholders raised numerous governance concerns and contended in legal documents that Unilever was managing Limuru Tea as a mere subsidiary, having appointed itself as the agent, exclusive purchaser, and sole marketer of all tea produced by Limuru.
To address these grievances, Kenyanjui, acting on behalf of Wanjui during his time in the United States, aimed to secure a position on the Limuru Tea board.
