In the dynamic landscape of Kenya’s telecommunications giant, Safaricom, billionaire John Kibunga Kimani has quietly emerged as a significant player in ownership changes. Over the six months leading up to December 2023, Kimani strategically acquired an additional 8.64 million shares, elevating his total stake to an impressive 27.7 million units. This move positions him as the second-largest individual shareholder in East Africa, closely trailing the Solanki duo with 40.41 million units.
Kimani’s timing is noteworthy, as Safaricom’s share price experienced a substantial 20.6% decline from June to December. Despite this dip, Kimani and other local investors view the situation as an opportunity, capitalizing on the discounted prices while foreign corporate investors opt to reduce their exposure to the stock.
The ownership landscape of Safaricom is undergoing a fascinating shift, with retail investors, who initially sold off shares after the company’s IPO in 2008, now cautiously returning to the market. This trend is particularly noticeable among investors holding up to 100,000 shares each, slowly rebuilding their positions over the past two years.
Kimani’s substantial investment reflects his confidence in Safaricom’s long-term prospects, mirroring a broader sentiment among local investors who perceive value in the company despite recent price fluctuations. This changing ownership dynamic holds potential implications for Safaricom’s future direction and its relationship with its diverse shareholder base.
As local investors engage in this opportunistic buying spree, only time will reveal whether their confidence will be rewarded. Nonetheless, it is evident that Kimani’s strategic move places him at the center of a captivating chapter in Safaricom’s ongoing saga.
