Moi-era political elite have recently transferred shares worth Sh4 billion that placed them among the top 10 owners in the financial services company. FILE
By Victor Juma,
IN SUMMARY
Businessmen associated with former presidents Daniel Moi and Mwai Kibaki have recently transferred shares worth Sh4 billion that placed them among the top 10 owners in CfC Stanbic.
The shares were held through Africa Liaison & Consultant Services (Alico) — an investment vehicle that held 40.4 million shares or a 10.2 per cent stake in the firm.
The disappearance of Alico from the list of CfC Stanbic’s top 10 institutional owners signals that the old guard may have finally liquidated their investment and bowed out.
A group of politically connected businessmen has quietly exited the top shareholders’ list at CfC Stanbic Holdings, the company that owns Kenya’s sixth largest bank CfC Stanbic.
The latest regulatory filings show that the businessmen associated with former presidents Daniel Moi and Mwai Kibaki have recently transferred shares worth Sh4 billion that placed them among the top 10 owners in the financial services company.
The shares were held through Africa Liaison & Consultant Services (Alico) — an investment vehicle that held 40.4 million shares or a 10.2 per cent stake in the firm.
The disappearance of Alico from the list of CfC Stanbic’s top 10 institutional owners signals that the old guard may have finally liquidated their investment and bowed out.
Former Attorney-General Charles Njonjo tops the list of Alico owners that also includes Jeremiah Kiereini (former head of public service), Julius Gecau (former Kenya Power CEO), and the late Asian businessman P.K. Jani.
The late Ben Gethi, who served as Kenya’s police chief, former Cabinet minister Bruce McKenzie, and spymaster in the Moi government James Kanyotu also held large stakes in the company.
Alico made it to the list of top CfC Stanbic Holdings owners in the wake of the 2008 merger between CfC Bank and Stanbic Bank Kenya — a subsidiary of South Africa’s Standard Bank.
The deal was concluded after Standard Bank bought CfC Bank’s top owner Gambit Holdings (with a 49.6 per cent stake) in a multi-billion-shilling transaction.
Other shareholders, including Alico that held a 30 per cent stake in CfC Bank, were offered diluted stakes in the merged unit.
The takeover included CfC Bank’s other business interests — CfC Life Assurance Company Limited, the Heritage Insurance Company and CfC Financial Services Limited — that were all combined to form CfC Stanbic Holdings.
Standard Bank is the majority shareholder in CfC Stanbic Holdings with a 60 per cent stake, giving it control over the Nairobi Securities Exchange-listed firm.
Since the merger was completed six years ago, CfC Stanbic’s units have grown significantly, more than tripling profits and expanding the holding company’s total assets by billions of shillings.
CfC Stanbic Holdings’ net profit stood at Sh3 billion in the year ended December 2012 compared to Sh846.5 million in 2008 — the first year of merger.
The company’s asset base grew to Sh143.2 billion from Sh111.1 billion in the same period while the dividend payout rose to Sh0.73 per share from Sh0.5 in 2008.
READ: CfC Stanbic Bank’s quarter one profit jumps 78 per cent
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