The first family has reportedly seen a loss in the market value of their joint stake in NCBA Group by Ksh. 543.7 million (USD 4.6 million) in the last 100 days. NCBA continues to experience a fall in double digits percentage on the Nairobi Securities Exchange (NSE).
The Kenyatta family, Kenya’s largest landowners, owns a 13.2% stake in NCBA Group, totaling 217,497,023 ordinary shares. The stake is linked to Ngina Kenyatta, Muhoho Kenyatta, and Uhuru Kenyatta, Kenya’s current president.
According to an article posted on billionaires.africa, the decline in the market value of the family’s stake is the result of investors reducing their exposure to risky assets. This includes equities, as part of a move to preserve wealth and channel capital into profitable investments and assets.
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The shift in investor sentiment follows a drop in demand for emerging market stocks after central banks in developed markets raised interest rates. This is in an effort to cool inflationary pressures caused by rising energy and food prices.
As a result, NCBA shares on the NSE have dropped 9.2% from Ksh. 27 ($0.228) on April 11th, to Ksh. 24.5 ($0.207) currently. The decline in the group’s share price reduced the market value of the Kenyatta family’s joint stake from Ksh. 5.87 billion ($49.54 million) on April 11 to Ksh. 5.32 billion ($44.95 million) on July 20.
The NCBA Group was formed in 2019 by the merger of NIC Bank Group and Commercial Bank of Africa Group. Various reports have indicated that the bank is under the leadership of the wealthy Kenyatta, Merali, and Ndegwa families, resulting in Kenya’s third-largest bank.