Kiharu MP Ndindi Nyoro, a key ally of president-elect William Ruto, has made headlines when it emerged that he is the biggest individual shareholder at the Kenya Power and Lighting company.
This is after his shares tripled from Kshs9,116,800 at the end of June 2021 to Kshs27,291,400 by the end of June 2022.
The move saw his position at the company elevated from number 12 to number three after government and bank shareholders.
In a statement he shared on Monday, Nyoro set the record straight about his shares at KPLC noting that they had accumulated overtime after he began investing in stocks while back in campus.
“Several years back, we started off in stockbroking in first year in campus (KU). Thereafter running a firm in the sector and later a Private Equity firm, this specific counter probably for the last 3 or 4 years,” the lawmaker explained.
According to him the information about his shares at KPLC as well as other shareholders was regulatory filings up to June 30, 2022. He also noted that some of the shareholders use nominee names to hide their identities unlike him and several others who use their actual names.
He said that the government owns 50.1%, adding that directors are appointed by the government.
“Our small stake is passive. We make zero decisions and therefore purely a silent retail investor,” he said.
Nyoro however revealed the secrets behind his decision to invest in Kenya power.
“Like any other investment, you make decisions based on fundamental and gut feeling,” he explained.
Aside from that, he said that the stock is cheap, noting that it currently trades below Kshs2.
Nyoro further said that, “With gross full-year revenues of approximately Ksh150 billion, assets of around Ksh325 billion, probably Kenya Power is undervalued. The market values the company at around 1 percent of its assets base. The current market capitalisation being at around Ksh3 billion,” he added.
Finally, he said that it only takes half a year to recover the investment.
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