Table of Contents
Key Points
- Kenyan billionaire Baloobhai Patel invests $1.1 million in Co-op Bank, increasing his stake to 1.7%, signaling confidence in its growth.
- Co-op Bank reports a 4.4% profit rise, with share prices up 46.09%, showcasing resilience despite market challenges.
- Patel diversifies his portfolio, holding stakes in Absa Bank, Carbacid, and Sanlam, and recently profited from Bamburi Cement’s buyout.
Kenyan billionaire Baloobhai Patel, known for his diverse investment portfolio, has made another bold move in the financial sector, acquiring shares in Co-operative Bank of Kenya (Co-op Bank) worth nearly $1.1 million.
Patel’s latest investment sees him increase his stake in Co-op Bank, solidifying his position as one of the bank’s top shareholders. This move reflects his confidence in the bank’s potential and his ongoing commitment to expanding his influence in Kenya's financial industry.
Strategic investment in Kenya’s banking sector
According to regulatory filings, Patel, alongside his wife Amarjeet Patel, has boosted their stake in Co-op Bank by purchasing an additional 8.8 million shares, valued at Ksh145.2 million ($1.1 million). Their combined ownership now stands at 1.7 percent, bringing them closer to Co-op Bank CEO Gideon Muriuki’s 2 percent stake.
Patel’s strategy has been deliberate, with his stake growing from 1.55 percent in September 2024 to 1.7 percent by January 2025. His focus remains on undervalued stocks with strong growth potential. With 99.7 million shares now in hand, Patel is poised to receive a Ksh149.6 million ($1.16 million) dividend, based on Co-op Bank’s Ksh1.5 ($0.012) per-share dividend for FY 2023.
Co-op Bank defies market challenges with steady growth
Co-op Bank has demonstrated solid growth, with net profit rising by 4.4 percent to Ksh19.2 billion ($148.59 million) for the nine months ending September 2024. This consistent performance has boosted investor confidence, driving a 46.09 percent increase in its share price, from Ksh11.26 ($0.087) to Ksh16.45 ($0.127) by the end of the year.
This sustained growth has secured Co-op Bank’s position as one of the leading players on the Nairobi Securities Exchange (NSE), with a market capitalization of Ksh96.8 billion ($749.39 million). Even amid a broader market slowdown, the bank's strong financial standing continues to attract long-term investors.
A diversified investment portfolio
Outside of Co-op Bank, Patel maintains a strong presence in Kenya’s equities market, holding significant stakes in companies like Absa Bank Kenya, Carbacid Investments, Sanlam Kenya, and CIC Group. Recently, he made a profitable exit from Bamburi Cement, reaping substantial capital gains from a strategic buyout, alongside a special dividend payout.
Patel’s growing stake in Co-op Bank further demonstrates his commitment to Kenya's financial sector and his ability to spot undervalued opportunities with solid long-term potential. As the bank continues to expand and strengthen its balance sheet, Patel’s increasing investment signals his belief in Co-op Bank’s ability to deliver lasting value for shareholders in the years to come.
