Why Billionaire Merali is Facing $2.22 Million Loss in Sasini Stake

The Merali family, one of Kenya’s wealthiest households and the largest shareholders of Sasini Tea, has suffered a significant decline in the market value of their stake in the agribusiness giant.

Over the past 21 days, the family’s 65.46% stake in Sasini—equivalent to 168,856,800 ordinary shares—has dropped by Ksh287.06 million ($2.22 million) amid sustained selling pressure on the Nairobi Securities Exchange (NSE).

This recent slump compounds a tough year for Sasini Tea. Between August 16 and November 1, the Merali family’s stake lost $1.9 million in value, declining from Ksh3.07 billion ($23.84 million) to Ksh2.83 billion ($21.95 million).

Sasini Shares Plunge Over 10% in November

Sasini Tea, a leading agribusiness firm specializing in tea, coffee, avocado, and macadamia production, has seen its share price fall by 10.15% since November 1.

The stock dropped from Ksh16.75 ($0.1296) to Ksh15.45 ($0.1176), reducing Sasini’s market capitalization to under $27 million. As of November 22, the value of the Merali family’s stake has further declined to Ksh2.54 billion ($19.63 million).

Also Read: Sasini bounces back to profitability in its half year results

Despite the losses, the Merali family remains one of Kenya’s wealthiest investors and a dominant force in the NSE’s agribusiness sector.

Investor Losses in 2024

Sasini investors have faced steep losses this year, with the company’s share price plummeting 24.75% in local currency terms. However, foreign investors have been partially shielded by the Kenyan shilling’s appreciation, limiting their losses to 8.97%.

A $100,000 investment in Sasini at the start of the year is now worth $91,029, reflecting an $8,971 decline in value.

Outlook

The continued downturn in Sasini’s stock highlights the challenges facing Kenya’s agribusiness sector, with market volatility and external pressures weighing heavily on performance.