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Centum Investment Company, a leading investment firm controlled by the family of late Kenyan tycoon Chris Kirubi, has announced plans to repay debt totaling Ksh2.3 billion ($19 million) using proceeds from the sale of its stake in Sidian Bank to Access Bank.
The decision to pay off the Ksh2.3 billion ($19 million) in debt is part of a strategic effort by the investment firm to reduce debt, cut down its financial leverage, and strengthen its balance sheet.
“The company’s strategy is to completely de-gear the balance sheet by the financial year ending March 2024, and has committed to applying part of the proceeds from the sale of its investment in Sidian Bank to debt repayment in the current financial year,” Centum stated.
Centum Investment is Kenya’s largest publicly traded investment firm. The East African-focused firm invests in real estate and private equity assets in the consumer goods, financial, agribusiness, and power sectors.
As of March 31, the company had borrowings of Kh4.1 billion ($33.8 million), while its subsidiaries had debt of Ksh16.4 billion ($135.3 million), which was secured by their respective assets and cash flows.
Kirubi, a leading Kenyan businessman and serial investor who passed away last year at the age of 80, had significant equity stakes in top companies such as Centum, KCB Group, Haco Industries, and Bendor Estate Limited, all of which are part of his Ksh20-billion ($176 million) estate.
Following his demise last year, his son Robert Kirubi and daughter Mary-Ann Musangi received 80 percent of his fortune, which included stakes in Centum, KCB Group, Haco Industries, Bendor Estate Limited, and a variety of other businesses.
Earlier this year, the family received a total dividend of Ksh120 million ($1 million) as part of the Ksh391-million dividend payout recommended to shareholders by Centum, in comparison to the Ksh66.05 million ($608,250) that they received last year.
On the flip side, Haco Industries, a leading FMCG manufacturer led by the family, received an additional payment of €2.3 million ($2.31 million) from French manufacturing conglomerate Societe BIC.
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