Ndindi Nyoro Reacts After Being Named KPLC's Largest Shareholder

Kiharu MP, Ndindi Nyoro has come out to respond to information that was released by the Capital Markets Authority (CMA) stating that he was the largest shareholder at Kenya power and lighting company (KPLC) after he tripled his shares.

Sep 12, 2022 - 08:35 Updated: Sep 12, 2022 - 08:38

Ndindi Nyoro Reacts After Being Named KPLC's Largest Shareholder

According to sources, Ndindi increased his shares from 9,116,800 shares at the end of June 2021 to 27,291,400 shares by the end of June 2022. This move made him in the third position in the listings of the shareholders in the company.

Ndindi Nyoro defended himself by stating that the government-owned approximately 50.1% of the KPLC and that all the directors were appointed by the government.

"Government owns approx 50.1% of Kenya Power. All directors are therefore appointed by GoK. Our small stake is passive. We make zero decisions and therefore purely silent, retail investors," Kiharu MP revealed.

Kiharu MP has come out to issue information regarding the company while stating that some shareholders use hidden identities while investing in the company.

"Some shareholders prefer to use their actual names while investing, others use "nominee accounts" to hide identities. We are in the earlier category since we don't see the need to use the latter one. The majority of the top shareholders have chosen "nominee accounts". Some are individuals, others are pension funds," Ndindi stated.

Ndindi also revealed that he started his investment move while he was studying at Kenyatta University and thereafter run his firm in the sector and later a private equity firm.

"The investment has been accumulated over time. Several years back. We started off in stockbroking in 1st year on campus (KU). Thereafter running a firm in the sector. And later a Private Equity (PE) firm," Nyoro stated.

Ndindi also stated that the list was regulatory filings up to June 30th, 2022 stating that that was public information, part of which is usually included in the financial statements.

He also revealed that his investment strategy is guided by Wareen Buffers Mantra.

Reasons why Ndindi Nyoro invested in KPLC

1. According to Nyoro, the stock is cheap, a penny stock. Currently trading at below Ksh 2.

2. With gross full-year revenues of approximately Ksh 150 B, and 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 capitalization is at around Ksh 3B.

3. Using the half-year financials up to Dec 2021, where Earning Per Share (EPS) was Ksh 1.96, then the PE ratio is just about 0.5 or half a year. Meaning if the company was to pay all the earnings as dividends, it would take 0.5 years (half a year) to recover the investment.