Wealthy Kenyan Ndegwa family gains $3.1 million from stake in NCBA Group

In the past 33 days, the family of the late Kenyan banker Philip Ndegwa has gained Ksh371.01 million ($3.1 million) from their stake in NCBA Group, as market participants forecast growth in the bank’s earnings in 2022 after a stellar performance in 2021.

NCBA Group is a Nairobi-based financial services conglomerate that operates as a holding company through its extensive network of subsidiaries in Tanzania, Rwanda, Uganda, and Cote d’Ivoire.

The Ndegwa family, which was involved in the merger of NIC Bank Group and Commercial Bank of Africa Group in 2018, owns a 12.52-percent stake in NCBA Group through its investment vehicle, First Chartered Securities.

According to data obtained by Billionaires.Africa, shares in the Nairobi-based lender have risen in value by more than seven percent in the past 33 days, as investors reacted to a 20-percent increase in the lender’s earnings in the first quarter of 2022 above Ksh3.4 billion ($29.1 million), reflecting strong underlying performance across all areas of its business.

The market value of the family’s stake has increased from Ksh4.92 billion ($42.08 million) 33 days ago to Ksh5.28 billion ($45.18 million) at the time of writing this report as a result of the rise in the bank’s shares from Ksh23.85 ($0.204) on May 4 to Ksh25.6 ($0.219).

This amounts to a Ksh371.01-million ($3.1 million) gain for the multimillionaire Ndegwa family in 33 days.

The late Kenyan banker’s family successfully transferred their stake in NCBA Group to First Chartered Securities, the family’s investment vehicle, near the end of 2021.

The share-transfer agreement was also strengthened by an additional purchase, which increased the family’s direct interest in First Chartered Securities to 12.52 percent, or 206.29 million shares.

The Ndegwa family received a total dividend of Ksh464.15 million ($4 million) from their stake earlier this year.