KENYA : Kiharu Member Of Parliament Ndindi Nyoro has seen his stake in Kenya Power surge in value to Sh210 million from Sh33 million in just six months, following the company's stock rally of over 300 percent.
The lawmaker, who holds 30 million shares representing a 1.54 percent stake in the company (up from 20.08 million shares in June 2024), is set to receive a dividend payment of Sh21 million, bringing his total gains over the six-month period to Sh198 million as the stock price rose from Sh1.66 to Sh7.
The impressive gains reflect broader positive performance among parastatals at the Nairobi Securities Exchange, with Kenya Power, KenGen, and East Africa Portland Cement Company all seeing price appreciation between 100 and 400 percent over the past 12 months.
Kenya Power's turnaround has been particularly notable, with the company reporting a net profit of Sh30.08 billion for the year, compared to a loss of Sh3.19 billion in 2023, leading to its first dividend payment in six years.
Nyoro, who began investing in equities as a university student and accumulated his Kenya Power shares over five years when they were undervalued, is now the largest individual shareholder in the parastatal ahead of Naran Khimji Hirani and Virji Khimji Hirani.
However, market analysts caution that while Kenya Power's monopoly status and low per capita electricity consumption present significant potential, the company's fundamentals remain largely unchanged.
The 21% rise in sales revenue was primarily driven by tariff adjustments from April 2023 rather than operational improvements, with system losses actually increasing to 23.16%.
The stock's recent rally has been dominated by local investors with minimal foreign participation (0.3%), raising questions about the sustainability of the price increase, particularly given the limited market liquidity and the country's ongoing economic challenges.