Members of the Kenyatta family bought Ksh8.4 billion worth of shares during the NIC-CBA bank merger in a deal filed with the Registrar of Companies. According to Business Daily, President Uhuru Kenyatta, his brother Muhoho Kenyatta and Mama Ngina Kenyatta will control a combined 13.2% stake after each bought shares worth Ksh2.8 billion.
Additionally, former CBK governor Phillip Ndegwa’s family, who are the founders of NIC Bank, acquired a total of Ksh8.6 billion (13.25%). For instance, two siblings James Ndegwa and Andrew Ndegwa acquired shares worth Ksh2 billion each.
Billionaire business mogul Naushad Merali is set to control Ksh1.9 billion stake amounting to 2.9% equity. Merali, who was also the founder of the Kenyan mobile service provider, Kencell, currently has a 5.6% stake in CBA. The clique of billionaires and politicians who effected the purchase will control a combined stake of 53 percent.
The merged outfit is set to start trading on the Nairobi Securities Exchange later in 2019 with a market capitalization value of over Ksh65 billion.
Currently, the Kenyatta family has a reported 24.92% interest in CBA while the Ndegwas control 25% stake in NIC.
CLOAKED IDENTITY
The identity of other shareholders in CBA is cloaked in trusts and nominee accounts making it hard to get the identities of the investors.
The merged outfit will be the third-largest bank in the country with assets worth Ksh444.3 billion based on September disclosures.
Currently, KCB Group ranks first with assets worth Ksh684 billion followed by Equity Group at Ksh560.3 billion and Co-op Bank at Ksh404.1 billion.
