Centum Investments

Centum Investments

Type	Public Limited Company
Traded as	KN: ICDC USE:CENT
Industry	Investments
Founded	1967
Headquarters	Nairobi, Kenya
Key people	Donald Kaberuka (Chairman)[1] James Mwirigi Mworia (CEO) Samuel Kariuki (CFO) [2]
Products	Equity Ownerships, Real Estate Development
Revenue	Aftertax: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

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]

History

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.^[8] The shares of Centum Investment Company Limited have been publicly traded on the NSE since 1967 and on the USE since 10 February 2011.^[9] Plans are underway to crosslist the company stock on the Dar es Salaam Stock Exchange and on the Rwanda Stock Exchange.^[10]

Investment structure

Centum's investments are organised into three divisions:

Quoted Private Equity

This division invests in publicly traded companies in various stock exchanges on the African continent. This segment represents 19% of Centum’s portfolio value.^[11] These include:^[12]

• Longhorn Kenya Limited - 60.20% shareholding - A publishing company listed on the Nairobi Securities Exchange with subsidiaries in Kenya, Uganda, and Tanzania and distribution in Malawi and Rwanda.^[13]

Private Equity

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.^[14] Per its March 2014 annual report, these included:^[12]

• 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.^[15]
• 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.^[16][17]
• Almasi Beverages Limited - 50.95 percent shareholding^[18] - 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.^[19]
• 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

This division is involved in real estate development in Kenya^[20] and Uganda,^[21] with an eye to expanding into other countries in the African Great Lakes region.^[22] These include:^[12]

• 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.^[19]

Former investments

• 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.^[23]
• 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.^[24]
• 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.^[25]
• In 2014, Centum exited two investment funds Helios and Nigeria-based African Capital Alliance where total investments totaled KShs500 million.^[3]

Ownership

As of March 2016, the company stock was owned by the following corporate entities and individuals:^[26]

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

• Kenya Wine Agencies Limited
• Uganda Securities Exchange
• K-Rep Bank
• UAP Holdings
• Longhorn Kenya Limited
• Carbacid Investments
• Rift Valley Railways Consortium

References

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. 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. "Listed Equities On Uganda Securities Exchange". Uganda Securities Exchange. Retrieved 14 April 2014.
8. "Centum: Our History". Centum Investment Company Limited. Retrieved 14 April 2014.
9. Ojambo, Fred (29 December 2010). "Ugandan Exchange Approves Secondary Listing by Centum Investment of Kenya". Bloomberg.com. Retrieved 14 May 2014.
10. Ojambo, Fred (10 February 2011). "Centum Investments Starts Secondary Trading In Uganda". Bloomberg.com. Retrieved 14 April 2014.
11. "Quoted Private Equity". Centum Investment Company Limited. Retrieved November 20, 2014.
12. "Centum Investment Company Limited 2013/14 Annual Report" (PDF). Centum Investment Company Limited. March 31, 2014. Retrieved November 20, 2014.
13. "Longhorn Kenya 2016 Annual Report" (PDF). Longhorn Kenya. 2016-06-30. Retrieved 2016-10-17.
14. CENTM. "Private Equity". Centum Investment Company Limited (CENTM). Retrieved November 20, 2014.
15. Herbling, David (10 February 2015). "Centum Enters Beer Market With Danish Carlsberg Franchise". Business Daily Africa. Nairobi. Retrieved 10 February 2015.
16. 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.
17. 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.
18. Juma, Victor (8 December 2014). "Centum buys majority stake in bottling firm". Business Daily Africa. Retrieved 9 December 2014.
19. Mugwe, David (25 February 2013). "Centum Gets Uganda's Approval On Real Estate Project". The EastAfrican. Nairobi. Retrieved 21 June 2015.
20. Thiong'o, Peterson (14 June 2014). "Centum Shares Hit New Highs On Improved Profits, Mega Projects". The EastAfrican. Nairobi. Retrieved 14 June 2014.
21. Ojambo, Fred (12 April 2013). "Kenya's Centum to Invest $22 Million In Ugandan Luxury Marina". Bloomberg News. Retrieved 14 June 2014.
22. Kamau, Scola (30 November 2010). "Centum Ventures Into High Return Markets". The EastAfrican. Nairobi. Retrieved 10 February 2016.
23. Juma, Victor (27 January 2015). "Old Mutual Raises Stake In UAP After KSh14 Billion Buyout". Business Daily Africa. Nairobi. Retrieved 27 January 2015.
24. CICL (21 January 2012). "Centum Exits From RVR". Nairobi: Centum Investment Company Limited (CICL). Retrieved 2 September 2015.
25. RIKE (11 May 2011). "Centum Confirms Carbacid Share Sale" (PDF). Nairobi: Rich.co.ke (RIKE). Retrieved 12 February 2015.
26. Centum Investments (26 August 2016). "Annual Report and Financial Statements for the Year Ended 31 March 2016" (PDF). Nairobi: Centum Investments. Retrieved 13 October 2016.

External links

• Centum Homepage
• Kirubi Crosses 25% Centum Ownership Mark
• Centum Has Firm Grip On Its Growing Investment Bag