Investor John Kibunga Kimani has increased his stake in Kakuzi to 30.3 percent this month, exceeding the original target of 29 percent signifying his confidence in the company’s future.
Kibunga, who was brought up in one of the firm’s estates, has steadily increased his stake from as low as two percent in 2005 to become the second largest shareholder after Camellia Plc which holds a 50.7 percent stake.
Kibunga has not only bought into Kakuzi because of dividends and capital gains but also because of his historical connection with it.
The company’s share price has increased more than 70 percent since early 2015 when Kibunga’s stock purchase became public. Part of the reason the price increased was because of his purchase.
Although the billionaire investor is increasing his stake in Kakuzi, he has abstained from joining the company’s board or appointing his representatives as directors.
Kakuzi posted a net profit of Sh591.6 million in the year ended December 2017, an increase from Sh562.4 million in the previous year. The net profit increase was attributed to the growth in sales.