Connect with us

Stock market

Tanzania billionaires buy big chunk of Safaricom

 Aunali and Sajjad Rajabali have been accumulating shares in NSE-listed firms over the past two years

Published

on

Two Tanzanian billionaires have bought 10 million shares of Safaricom worth Ksh295 million, becoming the third-largest individual investors in the telecommunications firm. The investments of Aunali and Sajjad Rajabali in the region’s most profitable company is disclosed in the Nairobi Securities Exchange-listed firm’s April regulatory filing of its ownership structure.

The Rajabalis are now ranked behind billionaire investor John Kibunga Kimani who has 11.8 million shares worth Ksh348 million and Ramaben Patel — the top individual investor with 12.7 million shares currently valued at about Ksh374 million. The duo has been accumulating shares in NSE-listed firms over the past two years, with their cumulative investment standing at more than Ksh1.8 billion.

The Rajabalis have taken significant stakes in Equity Group, Co-op Bank, KenolKobil, Jubilee Holdings and I&M Holdings. Safaricom is the most profitable company in the country, having dominated the various segments in the telecommunications market including voice, mobile data and mobile cash transfers. 

Analysts say the attractiveness of the telco going forward will depend on the scope and intensity of proposed regulations which arose after fears that the company has cornered the market, leaving its rivals in devastating losses.

Safaricom made a net profit of Ksh55.2 billion in the year ended March, a 14.1 per cent rise from Ksh48.4 billion the year before. The company declared a dividend of Ksh1.1 per share or a total of Ksh44 billion, representing an 80 per cent payout.

The telcos’ generous dividend distribution has been supported by minimal debt, with the company funding its heavy capital expenditure from internally generated cash.

The biggest uncertainty about Safaricom’s future performance is seen arising from new regulatory actions.

READ: A WALK DOWN 4 GENERATIONS OF BATA SHOES

“The numbers reported suggest that the company still makes a compelling case to buy, on price dips for the long term investor. Regulation, especially asymmetrical tariffs and restrictions on non-replicable offerings may be a key concern in coming months,” Standard Investment Bank said in a statement.

“We think it is inevitable that a material regulatory decision will be made despite protests given the current industry structure. The magnitude, however, remains uncertain. Certain measures may also take longer to implement.”

Business Daily is Kenya's only daily business newspaper published by the Nation Media Group. The newspaper, launched in March 2007, is published from Monday to Friday, with the Friday edition circulating over the weekend. It is based at the Nation Centre in Nairobi.

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News Updates

Education11 hours ago

100 schools join tree planting competition

In its fourth phase, they will compete in nurturing drought resistant Terminalia brownie, Senna siamea and Melia volkensi tree species in 0.5 acre...

Opinion11 hours ago

Unlock pension fund capital to address the housing shortage in Kenya

Pension funds in the Kenya have traditionally invested in property, equities and debt instruments but there has been agitation to...

NEWS12 hours ago

Why Balala cancelled Sh20m Shujaa sponsorship

CS says players embarrassed the country by concealing the name: Make It Kenya on their team jerseys, while playing in...

Opinion3 days ago

All-round approach will prevent tax offences and financial crimes

Kenya has become increasingly exposed to illicit products and counterfeit goods, hence the need to take an all-round approach towards...

Economy3 days ago

Kenya’s GDP to hit 5.7% despite debt burden

Despite a debt increase, Kenya’s GDP is expected to reach 5.7% up from 4.9% last year, according to ICAEW’s (the...

NEWS6 days ago

DPP seeks to withdraw forgery case in Sh500m Karen land suit

The Director of Public Prosecutions (DPP) has requested for withdrawal of the case against Guy Spencer Elms, the lawyer accused...

Politics6 days ago

Chebukati ‘out to fix Chiloba’

When Judge Stephen Radido delivered his ruling on Thursday setting aside IEBC chairman Wafula Chebukati’s decision to send the CEO,...

Health1 week ago

Pharmaceutical firm backs social investments in healthcare

Boehringer Ingelheim, one of the world’s leading pharmaceutical companies, and Ashoka, the world’s largest network of social entrepreneurs, have held...

Education1 week ago

MKU ranked among 10 best universities in Kenya

Four local private universities in top 10 ranking of universities in the country.

NEWS1 week ago

4 MultiChoice traders win trip to watch World Cup in Russia

They will have an experience of a lifetime touring Petersburg, the Vodka Museum and enjoy a private boat tour along...

Advertisement

Trending