Individuals living around Kakuzi #ticker:KUKZ raised their stake in the agricultural firm to a new high of 1.11 percent in the year ended December.
Through Kakuzi Neighbourhoods Development Foundation, they increased their ownership to 216,598 shares that have a current market value of Sh91.9 million.
The foundation is backed by former Kakuzi squatter John Kibunga Kimani who has the second-largest stake in the company at 32.34 percent.
The philanthropic outfit formed in 2018 to boost the economic welfare of the community first acquired 148,500 shares in the year ended December 2018 when it was ranked eighth on the list of the company’s top shareholders.
It is now ranked fifth behind UK multinational Camellia Plc with a 50.7 percent stake, Mr Kimani, and two other institutional investors.
The foundation is set to receive a gross dividend of Sh4.7 million from the Nairobi Securities Exchange #ticker:NSE -listed firm which has declared a record payout of Sh22 per share for the year ended December.
The payout represents a 22.2 percent increase from the Sh352.7 million or Sh18 per share paid for the prior financial year which was also a record.
The new dividend will be distributed on June 30 to shareholders on record as of May 31.
Kakuzi reported a net profit of Sh319.7 million in the year ended December, down from Sh622 million the year before.
Share purchases by Mr Kimani and the foundation –besides Kakuzi’s rising dividend payouts— have helped to raise the company’s share price to the current level of Sh424 amid reduced liquidity.
Mr Kimani raised his stake to 32.34 percent last year from 32.3 percent in 2020. The investor, who joined Kakuzi’s board of directors in November 2020, got approval from the Capital Markets Authority to raise his ownership to just under 40 percent.The company has only 19.59 million shares and has not taken action to increase the volume of stock through stock splits or bonus shares issuance.The stock trades infrequently and at volumes of less than 1,000 units per day.Mr Kimani earlier said the foundation will be focused on improving sanitation and educating bright students from poor families. firstname.lastname@example.org