Kenya’s Equity Group Stake Declines By $3.4 Million

Kenyan multimillionaire banker James Mwangi, managing director and CEO of Equity Group Holdings Plc, has seen the market value of his shareholding in the institution plummet following a recent drop in its share price on the Nairobi Securities Exchange (NSE).

Mwangi’s Equity Group stock has declined by Ksh434.55 million ($3.38 million) in the last 27 days. This follows a $3.77 million gain from May 13 to 21, when his shareholding increased from Ksh5.53 billion ($42.05 million) to Ksh6.01 billion ($45.75 million).

Equity Group has evolved as a major force in East and Central Africa under the leadership of James Mwangi, the company’s Managing Director and CEO. Mwangi’s strategic vision has propelled the lender’s expansion throughout the region, with operations operating in Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of Congo.

Equity Group’s shares have dropped 7.23 percent in the past 27 days, from Ksh47.05 ($0.36) on May 22 to Ksh43.65 ($0.34). This decline has reduced its market value to below $1.3 billion, resulting in significant losses for stockholders, including Mwangi.

Kenya’s richest banker, James Mwangi, owns a 3.38 percent interest in Equity Group. This equals 127,809,180 ordinary shares.

However, the recent slide in Equity Group shares has caused the market value of his interest in the leading lender to fall by Ksh434.55 million ($3.38 million) in the last 27 days, from Ksh6.01 billion ($46.73 million) on May 22 to R5.58 billion ($43.35 million) at the time of writing.

Despite the recent drop, Mwangi remains a major player on the Nairobi Securities Exchange, as well as one of Kenya’s wealthiest individuals.

Despite the recent decline, Equity Group remains a promising investment opportunity for 2024. The Kenyan financial behemoth’s share price has increased by 29.72% year to date in local currency terms.

This favorable outcome is even more impressive given the Kenyan shilling’s recent increase against the US dollar. After factoring in currency gains, Equity Group shareholders have received a total return of 57.8% on their investments this year.

For example, a $100,000 investment in Equity Group at the start of 2024 would today be worth around $157,880, representing a $57,880 profit.

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