Sharp Daily
No Result
View All Result
Saturday, June 7, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Top US Investor sells Safaricom shares amid dividend protest

Austin Wekesa by Austin Wekesa
March 4, 2024
in News
Reading Time: 2 mins read

FMR LLC, operating as Fidelity Institutional Asset Management, a prominent American investment management entity, has opted to divest a substantial portion of its holdings in Safaricom.

Once among the top five investors in Safaricom, FMR has scaled down its stake from 921.1 million shares in September 2022 to approximately 314 million shares recently.

This strategic move stems from frustrations regarding delayed dividend repatriation, attributable to difficulties in acquiring U.S. dollars from the Kenyan market.

According to sources, FMR commenced the process of offloading shares in Safaricom during the last quarter of 2022, citing challenges in timely repatriating dividends, a crucial requisite for foreign investors.

RELATEDPOSTS

Safaricom 2025 financial triumph and effect on Kenyan economy

May 28, 2025

Safaricom’s legal battle against journalist sparks press freedom concerns

March 27, 2025

Notably, in December alone, the firm sold 92.5 million shares, constituting 61.3% of the total 151.0 million Safaricom shares traded during that period.

The stock price of Safaricom witnessed a sharp decline from KES 29.82 in September 2022 to KES 13.30 recently, resulting in a significant devaluation of the company on the Nairobi Securities Exchange (NSE), plummeting by 55% from KES 1.2 trillion to KES 532.9 billion.

The persistent divestment of Safaricom shares by FMR has sparked concerns regarding a potential complete exit from its investment, exacerbating an oversupply of shares in the market and further exerting pressure on the stock price.

Safaricom’s CEO, Peter Ndegwa, has acknowledged the challenges associated with dividend repatriation, citing delays of up to four months due to liquidity issues with the Kenyan currency. Despite announcing a KES 23 billion interim dividend, Safaricom’s recent disclosures failed to invigorate market optimism as in previous instances.

The divestment actions undertaken by FMR, coupled with those of other foreign investors such as Harding Loevner LP, Nikko Asset Management Americas, and Wellington Management, have significantly influenced Safaricom’s share price.

Safaricom, alongside banks, which are consistent dividend payers, necessitate U.S. dollars to fulfill obligations to foreign investors, thereby adding strain to the exchange rate.

This scenario underscores broader apprehensions concerning the Kenyan market’s capacity to facilitate prompt withdrawals of foreign investments. Reports indicate that the delays in dividend repatriation coincided with the initiation of FMR’s divestment activities, corroborating Ndegwa’s statements.

FMR’s decision to divest its Safaricom shares, alongside similar actions by other foreign entities, underscores the challenges confronting foreign investors in repatriating dividends from the Kenyan market, thereby impacting both the company’s valuation and the overall market sentiment.

Previous Post

KRA hiring of 1,400 Tax Revenue Service Assistants deemed illegal

Next Post

Founder of Mayfair Holdings Amin Gilani passes away

Austin Wekesa

Austin Wekesa

Related Posts

News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025
Agriculture And Economy
News

Lets get Kenya out of FATF list

May 9, 2025
News

The downside of Impact Investing

May 2, 2025
News

Leadership challenges at the University of Nairobi

April 24, 2025
News

Easter eggs and earnings: Growing your nest egg with CMMF

April 16, 2025
News

Geoffrey Ruku declares KES 377M net worth during CS vetting

April 15, 2025

LATEST STORIES

How Kenya’s E-Mobility shift could redefine urban planning

June 5, 2025

Economic liberators are the real heroes and heroines of the year

June 5, 2025

Affordable retirement planning for small businesses with CURBS

June 5, 2025

How Kenyan banks can modernize without marginalizing

June 4, 2025

Human rights concerns over activists’ treatment in Tanzania

June 4, 2025

Decoding stock-based compensation

June 4, 2025

Comparative advantage is the secret to real economic take off

June 4, 2025

Understanding inflation and its impact on everyday life

June 4, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024