Kenyatta Family Gains Ksh1.4 Billion From NCBA Group Stake Since January

The Kenyatta Family has gained over Ksh1.4 billion ($11 million) from their stake in NCBA Group since the beginning of the year.

NCBA’s share increased from Ksh 25.2 on January 1 to Ksh31.7 on November 11, a 25 percent jump bringing the market capitalization above Ksh52 billion, reports. 

The value of the Kenyatta family’s stake at NCBA increased from Ksh 5.48 billion to Ksh 6.48 billion in the same period. 

The rise has been attributed to investors’ positive reaction to NCBA’s strong financial performance in the first half of its 2022 fiscal year.

The Kenyatta family, which includes Ngina Kenyatta, Muhoho Kenyatta and Uhuru Kenyatta, owns a 13.2 percent stake or 217,497,023 ordinary shares in NCBA Group.

In May, the Ndegwa Family closed in on the Kenyattas’ as the top NCBA Group shareholders after transferring an additional KSh1.7 billion worth of shares.

According to the bank’s annual report, 70.9 million shares that was previously held in an account by asset manager ICEA Lion was moved to the family’s investment at NCBA.

The shares were moved to the family’s First Chartered Securities in the year ended December.

The transaction saw the family’s ownership increase by 12.7 million shares translating to a 12.52 percent stake currently worth Ksh5.1 billion.

The transactions saw the family close in on the Kenyatta family, the top shareholder at NCBA with a 13.2 percent stake worth KSh5.4 billion.

NCBA Bank was established following a merger between Commercial Bank of Africa Limited and NIC Group effective September 30, 2019.

Following the merger, effective October 1, 2019, all subsidiaries operated under a Non-Operating Holding Company, NCBA Group PLC.

In a statement, CBK Governor Patrick Njoroge said the merged institutions will operate as NCBA Bank Kenya PLC.

Njoroge said all account holders, depositors, employees, creditors and other stakeholders of the existing institutions should deal with NCBA Bank Kenya PLC and NCBA Group PLC.

This follows CBK’s approval on August 27, 2019 under Section 13(4) of the Banking Act, and approval by the Cabinet Secretary, National Treasury on September 20, 2019, for the merger under Section 9 of the Banking Act.

The transaction involved a share swap where CBA shareholders will exchange their shares for 53 per cent of the new shares in NIC.