Centum Investments

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Centum Investments
Public Limited Company
Traded as KN: ICDC
USE:CENT
Industry Investments
Founded 1967
Headquarters Nairobi, Kenya
Key people
[2]
Products Equity Ownerships, Real Estate Development
Revenue IncreaseAftertax:US$99.6 million (KES:9.9 billion) (FY:2015/2016)[3]
Total assets US$518.12+ million (KES:51.5 billion) (March 2016)[4]
Number of employees
90 (2015)[5]
Website www.centum.co.ke

Centum Investments, commonly known as Centum is a public East African investment company. It operates as an affiliate of the Kenyan government-owned Industrial and Commercial Development Corporation (ICDC).

Overview[edit]

Centum is a publicly owned investment company with headquarters in Nairobi, Kenya. Its shares are listed on the Nairobi Securities Exchange (NSE), where they trade under the symbol: ICDC.[6] The company shares are also cross-listed on the Uganda Securities Exchange (USE), where they trade under the symbol: CENT.[7] As of March 2016, total assets were valued at about US$518.2 million (KES:51.5 billion).[3]

Centum has invested in a politically controversial coal-fired power plant in Lamu through Amu Power Company, in which it holds a majority stake. (See Lamu Coal Power Station). Local communities in Lamu have challenged the establishment of the power station, citing irregularities in the issuing of the Environmental and Social Impact Assessment (ESIA).[8][9]

In June 2017, community activist Okiya Omtatah Okoiti threatened legal action against the government of Kenya. He wants the development of the plant abandoned, on grounds the proposed power station will cost taxpayers billion of shillings through the PPA Power Purchase Agreement [10][11]

Lamu is a UNESCO world heritage site and the plant would destroy the environment of Lamu at a time when renewable clean energy is available [12] The climate change costs of coal will only increase in the coming years while innovation is driving the price of renewable energy sources down. Compared to coal, renewable energy sources such as solar, geothermal, and wind, have lower total costs, less long-term risk, and greater potential to power Kenya’s sustainable economic development[12]

History[edit]

ICDC was founded in 1954 as a government parastatal, whose primary objective was to provide a vehicle for Kenyans to invest in the economy of newly independent Kenya by investing in Kenyan companies. In 1967, ICDC formed the subsidiary ICDC Investment Company Limited, whose shares were listed on the NSE.

In 1998, with the Government of Kenya having sold some of its majority shareholding, ICDC Investment Company adopted a new management structure, handing over day-to-day management to an independent professional managerial team, supervised by an independent board of directors elected by the shareholders.

In 2007, the shareholders changed the name of the company to Centum Investment Company Limited.[13] The shares of Centum Investment Company Limited have been publicly traded on the NSE since 1967 and on the USE since 10 February 2011.[14] Plans are underway to crosslist the company stock on the Dar es Salaam Stock Exchange and on the Rwanda Stock Exchange.[15]

Investment structure[edit]

Centum's investments are organised into three divisions:

Quoted Private Equity[edit]

This division invests in publicly traded companies in various stock exchanges on the African continent. This segment represents 19% of Centum’s portfolio value.[16] These include:[17]

Private Equity[edit]

This division acquires equity positions in non-publicly-traded companies, mainly in the African Great Lakes region, but increasingly in other parts of the continent as well.[19] Per its March 2014 annual report, these included:[17]

  • Centum Asset Managers Limited - 100 percent shareholding - A fund manager in Kenya.
  • King Beverage Limited - 100 percent shareholding - Owner of a franchise marketing contract with Danish beer manufacturer Carlsberg.[20]
  • Genesis Kenya Investment Management Limited - 73.35 percent shareholding - The second largest fund manager in Kenya.
  • Sidian Bank - 67.54 percent shareholding - A commercial bank in Kenya, licensed by the Central Bank of Kenya, the national banking regulator.[21][22]
  • Almasi Beverages Limited - 50.95 percent shareholding[23] - The second largest Coca-Cola bottling franchise in Kenya.
  • Amu Power Company - 51 percent shareholding - A power generation company.
  • Platcorp Holdings - Owner of Platinum Credit. 45 percent shareholding. A short term financing company with subsidiaries in Kenya, Uganda, and Tanzania.[24]
  • Nairobi Bottlers - 27 percent shareholding - The largest of the Coca-Cola franchises in Kenya.
  • Kenya Wine Agencies Limited - 26.43 percent shareholding - A leading manufacturer, distributor, and importer of wines and spirits in East Africa.
  • Aon Insurance Brokers - 21.5 percent shareholding - An insurance brokerage and consulting services company and the Kenyan subsidiary of Aon Plc.
  • General Motors East Africa - 17.8 percent shareholding - A motor vehicle retailer in Kenya and the local subsidiary of American-based General Motors.
  • NAS Servair - 15 percent shareholding - An on-site airport catering facility supplying over 30 International airlines that fly into and out of the Jomo Kenyatta International Airport in Nairobi and Moi International Airport in Mombasa.

Real Estate and Infrastructure[edit]

This division is involved in real estate development in Kenya[25] and Uganda,[26] with an eye to expanding into other countries in the African Great Lakes region.[27] These include:[17]

  • Athena Properties Limited - 100% shareholding - A real estate management, ownership, and development company. Athena Properties Limited is currently overseeing the Two Rivers Project in Ruaka near Nairobi, Kenya and Pearl Marina in Entebbe, Uganda.[24]

Former investments[edit]

  • UAP Holdings - 13.75% shareholding previously held - An investment, retirement, and insurance services group that operates mainly in East Africa. Centum exited this investment in 2015 through a direct sale to Old Mutual.[28]
  • Rift Valley Railways - 10% shareholding previously held - A consortium that was established in 2005 to manage the Uganda Railway parastatal railways of Kenya and Uganda. This investment terminated in 2012.[29]
  • Carbacid Investments - 22% shareholding previously held - A manufacturer and marketer of carbon dioxide gas for industrial and medical use as well as dry ice. This investment ended in 2011.[30]
  • In 2014, Centum exited two investment funds Helios and Nigeria-based African Capital Alliance where total investments totaled KShs500 million.[3]

Ownership[edit]

As of March 2016, the company stock was owned by the following corporate entities and individuals:[31]

Centum Investment Company Stock Ownership
Rank Name of Owner Percentage Ownership
1 Christopher John Kirubi
24.05
2 Industrial and Commercial Development Corporation
22.97
3 International House Limited
1.57
4 CFC Stanbic Nominees Limited A/C NR1031144
1.66
5 Uganda Securities Exchange
0.89
6 John Kibunga Kimani
0.89
7 Jubilee Insurance Company Limited
0.82
8 James Mworia Mwirigi
0.65
9 ICEA Lion Life Assurance Company Limited
0.65
10 Standard Chartered Kenya Nominees Limited A/C KE002662
0.55
Total
54.70

See also[edit]

References[edit]

  1. ^ Mutegi, Mugambi (16 November 2016). "Ex-AfDB boss Kaberuka to head Centum Board". Business Daily Africa. Nairobi. Retrieved 16 November 2016. 
  2. ^ Mutegi, Mugambi (10 February 2016). "Centum hires former PwC director as new chief finance officer". Business Daily Africa. Nairobi. Retrieved 10 February 2016. 
  3. ^ a b c Ngugi, Brian (8 June 2016). "Centum ends eight-year dividend drought as net profit hits Sh9.9 billion". Business Daily Africa. Nairobi. Retrieved 8 June 2016. 
  4. ^ Ngigi, George (29 March 2016). "K-Rep Bank net profit drops 27.5pc as funding costs go up". Business Daily Africa. Nairobi. Retrieved 29 March 2016. 
  5. ^ Juma, Victor (16 September 2015). "Centum doubles employees bonus payout to Sh1 billion". Business Daily Africa. Nairobi. Retrieved 16 September 2015. 
  6. ^ Michira, Moses (6 October 2010). "Kenya: Centum's New Shares Begin Trading". Business Daily Africa via AllAfrica.com. Nairobi. Retrieved 14 April 2014. 
  7. ^ USE (4 August 2017). "Listed Equities on Uganda Securities Exchange". Kampala: Uganda Securities Exchange (USE). Retrieved 4 August 2017. 
  8. ^ Kazungu, Kalume (26 Jun 2016). "Coal plant politics stokes archipelago election fires". Daily Nation. Nairobi. Retrieved 4 August 2017. 
  9. ^ Ghio, Nicole (28 August 2015). "In Kenya, Proposed Coal-Fired Power Plant Threatens Communities". Sierra Club. Retrieved 4 August 2017. 
  10. ^ Rajab, Ramadhan (11 June 2017). "Omtatah demands full disclosure on Lamu coal plant, says project unnecessary". The Star (Kenya). Nairobi. Retrieved 4 August 2017. 
  11. ^ The Star Kenya (11 June 2017). "Omtatah demands full disclosure on Lamu coal plant, says project unnecessary". Nairobi: Decoalonize.org Quoting The Star (Kenya). Retrieved 4 August 2017. 
  12. ^ a b The Conversation (31 May 2017). "Why Lamu coal plant does not make sense". The Star (Kenya). Nairobi. Retrieved 4 August 2017. 
  13. ^ "Centum: Our History". Centum Investment Company Limited. Retrieved 14 April 2014. 
  14. ^ Ojambo, Fred (29 December 2010). "Ugandan Exchange Approves Secondary Listing by Centum Investment of Kenya". Bloomberg.com. Retrieved 14 May 2014. 
  15. ^ Ojambo, Fred (10 February 2011). "Centum Investments Starts Secondary Trading In Uganda". Bloomberg.com. Retrieved 14 April 2014. 
  16. ^ "Quoted Private Equity". Centum Investment Company Limited. Archived from the original on 18 October 2014. Retrieved 20 November 2014. 
  17. ^ a b c "Centum Investment Company Limited 2013/14 Annual Report" (PDF). Centum Investment Company Limited. 31 March 2014. Archived from the original (PDF) on 29 November 2014. Retrieved 20 November 2014. 
  18. ^ "Longhorn Kenya 2016 Annual Report" (PDF). Longhorn Kenya. 2016-06-30. Retrieved 2016-10-17. 
  19. ^ CENTM. "Private Equity". Centum Investment Company Limited (CENTM). Archived from the original on 18 October 2014. Retrieved 20 November 2014. 
  20. ^ Herbling, David (10 February 2015). "Centum Enters Beer Market With Danish Carlsberg Franchise". Business Daily Africa. Nairobi. Retrieved 10 February 2015. 
  21. ^ CBK, . "Central Bank of Kenya: Commercial Banks & Mortgage Finance Institutions". Central Bank of Kenya (CBK). Archived from the original on 1 July 2014. Retrieved 31 July 2014. 
  22. ^ Mwaniki, Charles (20 May 2015). "Centum To Inject KSh1.2 Billion Bond Proceeds Into K-Rep Bank". Business Daily Africa. Nairobi. Retrieved 21 May 2015. 
  23. ^ Juma, Victor (8 December 2014). "Centum buys majority stake in bottling firm". Business Daily Africa. Retrieved 9 December 2014. 
  24. ^ a b Mugwe, David (25 February 2013). "Centum Gets Uganda's Approval On Real Estate Project". The EastAfrican. Nairobi. Retrieved 21 June 2015. 
  25. ^ Thiong'o, Peterson (14 June 2014). "Centum Shares Hit New Highs On Improved Profits, Mega Projects". The EastAfrican. Nairobi. Retrieved 14 June 2014. 
  26. ^ Ojambo, Fred (12 April 2013). "Kenya’s Centum to Invest $22 Million In Ugandan Luxury Marina". Bloomberg News. Retrieved 14 June 2014. 
  27. ^ Kamau, Scola (30 November 2010). "Centum Ventures Into High Return Markets". The EastAfrican. Nairobi. Retrieved 10 February 2016. 
  28. ^ Juma, Victor (27 January 2015). "Old Mutual Raises Stake In UAP After KSh14 Billion Buyout". Business Daily Africa. Nairobi. Retrieved 27 January 2015. 
  29. ^ CICL (21 January 2012). "Centum Exits From RVR". Nairobi: Centum Investment Company Limited (CICL). Archived from the original on 9 February 2015. Retrieved 2 September 2015. 
  30. ^ RIKE (11 May 2011). "Centum Confirms Carbacid Share Sale" (PDF). Nairobi: Rich.co.ke (RIKE). Retrieved 12 February 2015. 
  31. ^ "Annual Report and Financial Statements for the Year Ended 31 March 2016" (PDF). Nairobi: Centum Investments. 26 August 2016. Retrieved 13 October 2016. 

External links[edit]