Photo of President William Ruto and Kiharu MP Ndindi Nyoro. Image courtesy.
Kiharu Member of Parliament Samson Ndindi Nyoto has revealed why he decided to triple his shares in state-owned Kenya Power and Lighting Company (KPLC).
In a statement on Monday, the Ruto ally stated that he made the decision based on his financial instincts.
He said that the company’s stock was inexpensive and was currently trading for less than Ksh2. The legislator further emphasized that the utility’s valuation only represents a meager 1% of its asset base, which significantly underestimates its full potential.
“With gross full-year revenues of approximately Ksh 150 billion, assets of around Ksh 325 billion, probably Kenya Power is undervalued. The market values the company at around 1 percent of its assets base. The current market capitalization being at around Ksh3 billion.” Nyoro said.
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Nyoro expressed confidence that Kenya Power might achieve its full potential with an efficient government in place.
“Using the half-year Financials of up to Dec 2021, where Earning Per Share (EPS) was Ksh 1.96, then the Price Earnings (PE) ratio is just about 0.5 or half a year. This means if the company was to pay all the earnings as Dividends, it would take one 0.5 years to recover the investment.” He stated.
The Kiharu MP also revealed that the government still maintains the largest stake in the parastatal.
” The government owns approximately 50.1 percent of Kenya Power. All directors are therefore appointed by the State. Our small stake is passive. We make zero decisions and therefore purely a silent, retail investor.”
Nyoto further stated that he began stock trading back in Campus and has so far owned Stocking companies.
“The investment has been accumulated over time. Several years back. We started off in stockbroking in our first year in campus (KU). Thereafter running a firm in the sector. And later a Private Equity (PE) firm. ” He revealed.
Also Read: How Ndindi Nyoro Made Millions in Stock Exchange Before Joining Politics
