Ndindi Nyoro on being KPLC's largest individual shareholder; 'we started buying shares first year in KU'

This follows reports that the MP owns a majority of the stake in the company among its individual shareholders, with 27,291,400 shares as of June 2022.

The report by the Capital Markets Authority showed that Nyoro had tripled his shares from 9,116,800 shares at the end of June 2021. 

In a detailed Facebook post on Monday, the MP explained that his decision to buy a stake in the country’s power provider dates back to several years ago when he was still at Kenyatta University.  

“The investment has been accumulated over time. Several years back. We started off in stockbroking from 1st year on campus (KU),” said Nyoro.

He noted that he ran a stockbroking firm for a while, “and later a Private Equity (PE) firm. This specific counter is probably for the last 3 or 4 years.”

While attributing his investment decision to “fundamentals and gut feeling”, Nyoro pointed out that Kenya Power’s stock is cheap.

“The stock is cheap, actually a penny stock. Currently trading at below Ksh 2. With gross full-year revenues of Approximately Ksh 150 B, assets of around Ksh 325B, probably Kenya Power is undervalued,” the legislator noted.

“The market values the company at around 1% of its assets base. The current market capitalisation is at around Ksh 3B.”

On Monday a spot check by Citizen Digital showed Kenya Power shares were retailing at Ksh.1.76 at the Nairobi Securities Exchange (NSE).

“GoK owns approx 50.1% of Kenya Power. All directors are therefore appointed by GoK. Our small stake is passive. We make zero decisions and are therefore purely a silent, retail investor,” Nyoro added.

According to the MP, Kenya Power, which he says is undervalued despite recording revenues of Ksh.150 billion and total assets worth Ksh.325 billion, has the potential to earn him a lot of money if and when it bounces back.

“With gross full year revenues of Approximately Ksh 150 B, assets of around Ksh 325B, probably Kenya Power is undervalued. The market values the company at around 1% of its assets base. The current market capitalisation being at around Ksh 3B,” he said.

As advice to Kenyans wishing to buy shares in the power distributor, Nyoro said: “Any Kenyan can buy shares. You just need to open a CDS account from a stockbroking firm. Many banks also offer those services.”

The MP however cautioned that the information he shared was not expert advice.