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Muriuki tops Co-op bank as lead individual shareholder after purchasing 14.6 million worth of shares

Between January and June 2023, Co-op Bank’s shares ranged from Ksh.11.15 to Ksh.13.35

Gideon Muriuki, the Chief Executive Officer (CEO) of Co-operative Bank of Kenya, purchased 14.6 million shares worth Ksh.173 million ($1.2 million) in the first half of 2023, boosting his ownership to a two-percent stake in the bank.

Regulatory documents as of June this year, confirm that Muriuki’s stake increased from 1.75 percent in December 2022, solidifying his role as the leading individual shareholder in the company listed on the Nairobi Securities Exchange.

Insider shareholdings – by executives and board members – often reflect confidence in the company’s future.

This sentiment is particularly strong when insiders buy shares directly with their own funds.

Although several executives of listed companies have substantial shares, many obtain these through grants or deeply discounted options as part of their pay packages.

Muriuki had once held a two-percent stake in Co-op Bank, but after selling some shares in 2020, his stake had dropped to 1.75 percent.

Between January and June 2023, Co-op Bank’s shares ranged from Ksh.11.15 ($0.076) to Ksh.13.35 ($0.091), market data indicates.

Currently, the bank’s valuation is considered low by historical standards, even with its earnings and dividend growth. Co-op Bank’s present market value is approximately three times its earnings and 64 percent of its total assets, with a dividend yield of 12.7 percent.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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