Kenyatta family loses more than $4.5 million in 100 days as NCBA shares slump

The family of the late Jomo Kenyatta, Kenya’s first prime minister and president, has seen the market value of their joint stake in NCBA Group fall by Ksh543.7 million ($4.6 million) in the past 100 days, as shares in the leading financial services provider fell by double digits percent on the Nairobi Securities Exchange (NSE).

The decline in the market value of the family’s stake is the result of investors reducing their exposure to risky assets, particularly equities, as part of a move to preserve wealth and channel capital into investments and assets that can serve as a hedge against inflation.

The shift in investor sentiment follows a drop in demand for emerging market stocks after central banks in developed markets raised interest rates in an effort to cool inflationary pressures caused by rising energy and food prices.

As a result of these bearish pressures, NCBA shares on the NSE have dropped 9.2 percent from Ksh27 ($0.228) on April 11, 100 days ago, to Ksh24.5 ($0.207) at the time of writing.

The 9.2-percent decline in the group’s share price reduced the market value of the Kenyatta family’s joint stake from Ksh5.87 billion ($49.54 million) on April 11 to Ksh5.32 billion ($44.95 million) on July 20.

NCBA Group, the ninth most valuable company on the NSE, operates as a non-operating holding through its extensive network of subsidiaries in Tanzania, Rwanda, Uganda, and Cote d’Ivoire.

The Nairobi-based financial services conglomerate NCBA Group was formed in 2019 by the merger of NIC Bank Group and Commercial Bank of Africa Group under the leadership of the wealthy Kenyatta, Merali, and Ndegwa families, resulting in Kenya’s third-largest bank.

The Kenyatta family, Kenya’s largest landowners, owns a 13.2-percent stake in NCBA Group, totaling 217,497,023 ordinary shares.

The stake is linked to Ngina Kenyatta, Muhoho Kenyatta, and Uhuru Kenyatta, a leading politician who has served as the country’s president since 2013.