Kenyatta’s NCBA defies stock market crash, emerges the best at the NSE posting Sh3.1bn in a year.
The Kenyatta family has gained Sh3.12 billion in one year from their ownership of NCBA Group after the top-tier lender defied the stock market crash to emerge as the best stock at the Nairobi Securities Exchange (NSE).
The NCBA Group share increased by 57.94 percent in 2022, making it the best-performing at the Nairobi Stock Exchange.
The Kenyatta’s saw the worth of their stake close the year at Sh8.66 billion from Sh5.5 billion on the first trading day of January.
The Kenyatta’s control 13.2 percent of the bank.
NCBA owners include tycoons and formerly powerful political families in the era of Jomo Kenyatta and Daniel Arap Moi including the ex-Central Bank Governor, Philip Ndegwa, and former head of Civil Service, Simeon Nyanchae.
The increase has been attributed to investors reacting positively to NCBA’s market-beating half-year financial performance, which lifted the bank’s shares 66.74 percent over the past six months to close the year at Sh39.35 a piece — valuing the bank at Sh64.8 billion.
The Kenyatta and Ndegwa families merged the NIC Bank and the private CBA bank to form NCBA in 2019.
The bank’s net earnings for the nine months ending in September increased at the fastest rate of 96.2 percent, moving it up to the fourth-most profitable institution in the nation behind Absa Kenya.
While KCB Group saw a growth of 21.4 percent, Equity, Kenya’s most successful lender, reported profit growth of 27.9 percent.
Besides NCBA, Kenyatta’s other investments are Brookside Dairy, the upmarket and chic hotel chain, and Heritage Hotels East Africa.
The family is also linked to Media Max Company, which owns K24 TV, Kameme Radio, and The People Daily newspaper.
Uhuru Kenyatta’s assumption of the presidency has injected fresh energy into his family’s commercial empire with expansion plans, buyouts, and mergers taking centre stage.