Kiharu MP Ndindi Nyoro has explained why he tripled his shareholding of Kenya Power amid debate on his financial investments.
Ndindi Nyoro reveals plans to reap big from Kenya Power investment
Ndindi Nyoro gave an example of one of his aquaintances who made Sh70 million from Sh500,000
Nyoro said that his shareholding in the firm accumulated over time and that the information shared by Kenya Power also included other shareholders who chose to secretly invest in the company through nominee accounts.
He also said that the shares did not give him any undue influence over the operations of the utility company, despite being one of the largest individual shareholders.
The latest filings by the Capital Markets Authority (CMA) indicate that his shares jumped from 9,116,800 shares in June 2021 to 27,291,400 shares a year later.
With Kenya Power shares trading at Sh1.6 (as of Sep 2022), Nyoro's stake is valued at about Sh43 million.
His investment saw him move from the 12th position to the third largest individual shareholder, only coming behind the government and bank-owned shares.
“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.
Why Ndindi Nyoro bought Kenya Power shares
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.
“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.
“Our investment strategy is guided by Warren Buffers Mantra -Be greedy when others are fearful and fearful when others are greedy.
“NSE was among the worst performing markets in the world last year - we see opportunities here. From our banks and telcos expanding regionally. All these are opportunities,” Nyoro shared.
He however concluded that the information he shared was only casual and cannot be relied upon as expert advice by Kenyans who plan on investing in Kenya Power.
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