Kiharu Member of Parliament Ndindi Nyoro has divested a considerable portion of his shares in Kenya Power, relinquishing his status as the company’s foremost individual shareholder.
He sold a significant chunk of his shares, specifically 11.78 million shares, or 36 percent of his total holdings, between June and December 2023, a move that has reduced his direct ownership to 20.72 million shares.
As of Monday’s closing price for Kenya Power shares at KES 1.40 each, Nyoro’s current ownership of 1.06 percent in the company is valued at KES 29 million. The shares he sold during the six-month period amounted to KES16.5 million at the current price.
Back on June 30, 2023, when his stock market account showed he had 32.5 million shares, the value of his stake was KES 51.35 million, considering the prevailing price of KES 1.58 per share.
With the recent sale, Ndindi Nyoro has relinquished his top position and now ranks second, trailing behind Naran Khimji Hirani and Virji Khimji Hirani. The Hirani duo jointly holds KES 23.85 million shares, equivalent to a 1.22 percent stake in Kenya Power.
Kenya Power’s ownership is further diversified among individual shareholders from Kenya and the East African Community (EAC), collectively holding 605.9 million shares valued at KES 848.3 million, representing a 31.05 percent stake.
The Kenyan government, together, holds a stake of 1.26 billion shares, 64.36 percent valued at KES 1.76 billion. The remaining 89.58 million shares, or 4.6 percent, are in the hands of foreign investors.
Analysts consider Kenya Power’s stock, listed on the Nairobi Securities Exchange (NSE), as undervalued, featuring a price-to-book (P/B) ratio of 0.78. This makes it appealing to long-term investors who are prepared to endure the extended bearish market conditions.
Kenya Power is, however, a major user of foreign currency in the country, needing around $45 million to $50 million and €18 million to €20 million monthly to fulfill its obligations.
