Shah Karim al-Husayni (Aga Khan IV) recently had his share in Jubilee Holdings, East Africa’s leading insurance provider, drop by more than $1.6 million. This dip is accompanied by a nearly 5% decline in the insurer’s shares on the Nairobi Securities Exchange (NSE), reflecting the region’s financial market volatility.
Aga Khan IV owns a huge 37.98 percent stake in Jubilee Holdings through the Aga Khan Fund for Economic Development, with 27,528,739 shares in total. Despite being a prominent investor on the NSE, his assets have dropped by Ksh213.35 million ($1.65 million) in the last 20 days.
This drop comes after a significant growth in his investment; between September 16 and October 15, the value of his indirect share increased by $3.41 million, from Ksh4.27 billion ($33.04 million) to Ksh4.71 billion ($36.45 million). The latest collapse has reversed much of that gain, bringing his assets down to Ksh4.49 billion ($34.86 million).
Jubilee Holdings, founded in Mombasa, was the region’s first insurer and has since grown to become East Africa’s largest insurer, serving over 1.9 million clients in Kenya, Uganda, Tanzania, Burundi, and Mauritius.
The company’s strong market presence and track record of growth have made it a popular choice among regional investors, but the recent downturn raises questions about its future performance and the broader economic picture in East Africa.
The drop in Jubilee’s stock price is especially notable. Shares of the company fell from Ksh171 ($1.33) on Oct. 15 to Ksh163.25 ($1.27), signifying a 4.53 percent loss for stockholders and lowering the company’s market capitalization below $95 million.
This significant decline reflects broader market problems, resulting in a year-to-date loss for Jubilee Holdings of 11.76 percent on the NSE. The consequences of this drop are severe for investors.
A $100,000 investment in Jubilee at the start of the year is now worth $88,240, representing a loss of $11,760. This is a significant setback for shareholders who gained from a September rise only to see their gains quickly reversed.