(Last Updated On: August 29, 2016)
The banking sector stocks are in a blood bath in the stock market ever since President Uhuru Kenyatta signed the interest rates capping bill into law. Equity Bank CEO James Mwangi was among those hardest hit since he owns 4.54% of Equity Group Holdings, the company that owns Equity Bank Kenya. This is around 166 million shares at the bank, clearly a really huge amount.
Equity Bank’s stock price stood at an average of Ksh38 – 40 before the signing of the bill and has now slid to Ksh26.75 today so far with more possibilities of falling further. James Mwangi has so far lost Ksh1.9 billion of his net worth and his wife has lost over Ksh400 million in value since she also owns a large stake in the bank. Such a huge loss in just 3 days.
Other big fish have also been affected. Co-op Bank CEO Gideon Muriuki lost over 300 million from his owner ship in Co-op Bank, former Central Bank governor Philip Ndegwa’s family had their net worth in NIC banks drop from Ksh4.5bn to around Ksh3.8bn and counting, The Shah’s (Sarit, Sachit and SBR) at I&M Bank lost over Ksh1.4bn and The Babla family who own 1.55% of KCB lost over Ksh550m in two days.