Ndindi Nyoro buys 5.2M additional Kenya Power as part of plan to reap huge profits

This latest transaction consolidates his position as the largest individual shareholder in Kenya Power.

As of June 2023, Nyoro had increased his ownership in the company to 32.5 million shares, representing approximately a 1.67 percent stake.

In June 2022, the MP had 27.29 million shares as reported in regulatory documents.

The current value of his stake in the struggling utility stands at Sh48.75 million, with the new purchases made during the fiscal year ending in June amounting to nearly Sh7.92 million.

National Assembly Budget and Appropriations Committee Chairman Ndindi Nyoro speaking public hearings of the budget-making process at KICC Pulse Live Kenya

Ndindi Nyoro’s plans to reap big from Kenya Power Investment

In late 2022, the Budget and Appropriations Committee chair said his shares did not give him any undue influence over the operations of the utility company, despite being one of the largest individual shareholders.

“The investment has been accumulated over time. Several years back. We started in stockbroking in 1st year on campus (KU). Thereafter running a firm in the sector and later a Private Equity (PE) firm.

“GoK owns approx 50.1% of Kenya Power. All directors are therefore appointed by GoK. Our small stake is passive. We make zero decisions and therefore purely a silent, retail investors,” Nyoro said in a statement.

Ndindi Nyoro explained that his decision to triple his investment in Kenya Power was mostly speculative and based on his experience as a stock broker.

He said that he bought the shares because they have been trading at below Sh2 but the company had the potential to earn him a lot of money if and when it bounces back.

He noted that the company was undervalued despite recording revenues of Sh150 billion and total assets worth Sh325 billion.

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“However, investment decisions are two-sided. There are reasons why the market has undervalued Kenya Power including the high debt portfolio, huge unpaid bills, especially from GoK and inefficiencies stemming from being government-run.

“Most investors, us included, are holding for long term with the hope that the sleeping giant can roar with a few streamlining measures,” he said.

Nyoro gave a story about one of his acquaintances who made Sh70 million from an investment of Sh500,000 shares in Kenya Airways shortly after 2002 when the late Mwai Kibaki became president.

He also disclosed that he made a 500% profit from shares he had once bought at CIC firm before the company went public.