Nairobi based businessman Jimnah Mbaru earned over Sh900 million last week after selling his 50 million Britam shares.
Insiders did not indicate the exact price that Mbaru sold his shares to Zurich-based insurance company Swiss Re but mentioned that the billionaire made a large profit from the deal.
“Mr Mbaru sold the shares at more than Sh17 each,” the source who requested anonymity told the Business Daily, adding that giving the exact price would reveal his identity since only a select few are privy to the information.
Assuming that the sale costed Sh17 per share, that would imply that Mr Mbaru still sold the shares at double the Britam’s closing price of Sh8.50 on Thursday last week.
Last year, Swiss Re acquired 348.5 million shares from another businessman Peter Munga to become a shareholder of the insurer.
The latest acquisition therefore raises eyebrows over the transparency of the Nairobi Securities Exchange (NSE)-listed firms, the role of the Capital Markets Authority (CMA) and existing laws.
In contrast to other securities markets regulators in South Africa, the United States and Europe, Kenya’s CMA does not require listed companies and their insiders to disclose the price at which they buy or sell shares.