Best Investment Companies in Kenya in 2020

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Do you pool resources with your friends, family, or colleagues to invest? If you do, most likely you call them chama. These are investment vehicles that everyday Kenyans use to empower themselves economically.

Just like a chama, an investment company is no different. It is a business entity that pools together the money of investors and invests it in a profitable venture. 

However, unlike your local Chama, investment companies are regulated by law and have to follow due procedures in their operation.

This article is going to list the best investment companies in Kenya in 2020.

1) Centum Investment

Centum is the top publicly traded investment company in Kenya with its headquarters in Nairobi. It is listed on both the Nairobi Securities Exchange and Uganda Securities Exchange.  

In the NSE, its shares are traded under the symbol ICDC, while in the USE it is traded under CENT.

It has a diverse investment portfolio that investors can take advantage of. It has four main verticals which include: real estate, private equity, marketable securities, and financial services.

Its real estate portfolio boasts of Athena Properties Limited, Two Rivers Development Limited, Vipingo Development, and Pearl Marina in Uganda. While it’s financial services portfolio includes Nabo Capital, Zohari Leasing, and Sidian Bank.

Other notable investments under its name are Sabis International School, Akiira Geothermal Limited, Longhorn Publishers, Greenblade Growers Limited among many others.

As you can see its portfolio is diverse and the company has its footprint in almost all of the major sectors in the economy. Being the case, it makes it one of the best investment firms to invest in as an investor.

And as of the first half of 2019/20 ie 30th September, the company posted an increased pretax profit of Ksh7.7 billion compared to Ksh2.4 billion in a similar period last year. 

It also realized a net gain of Ksh12 billion from the disposal of its stakes in Almasi Beverages Limited, Nairobi Bottlers Limited, and King Beverage Limited.

For the same period, it also recorded a 49 percent growth in its operating profit, from Ksh992 million recorded the same period 2018 to Ksh1.5 billion for the period ending September 30, 2019.

This makes it the most profitable investment company in Kenya. Consequently, making it the best investment company to invest in 2020.

2) TransCentury 

This investment company was started by 29 friends in 1997. It has since evolved to become a robust investment group listed on the Nairobi Securities Exchange with its main focus on infrastructure development. Furthermore, it has grown and has spread its wings in East, Central, and Southern Africa. 

Its major investment is in East African Cables (a cable manufacturing company) in which it holds 68.38% of the shares. 

EAC is listed on the NSE, and it has subsidiaries in Kenya and Tanzania.  

Other than EAC, its other investments include East African Cables Tanzania Limited, Avery (East Africa) Limited, Civicon, Kewberg, Tanelec , Cableries Du Congo, and Development Bank of Kenya 

As of financial year ended June 2019, the group posted Sh297.6 million net profit. This was against a backdrop of Sh1.3 billion gain from debt restructuring of its subsidiary East African Cables.

TransCentury remains one of the top investment banks that any Kenyan can invest in. Its model on infrastructure is highly viable and has a high return on investment.

In light of this, any savvy investor should invest in the company.

3) Cytonn Investment

This investment company also doubles up as a real estate company. It has offices in both Nairobi and the DC Metro area.

It was started in 2014 and has since evolved to include 7 subsidiaries including Cytonn Investments, Cytonn Real Estate, Cytonn Education Services, Cytonn center of Affordable Housing, Cytonn Hospitality Cytonn Foundation, and Cytonn Asset Managers Limited (CAML).

Under its Cytonn Investments, it has High Yield products which include Cytonn High Yield Solutions (CHYS) for short term investors and Cytonn Project Notes for medium to long-term investments.

These high yielding products have consistently performed well. Their money market fund has always yielded a high return of 11% consistently making a good choice for an investor looking for a high return.

4) Home Afrika 

Home Afrika is an investment company listed on the Nairobi Stock Exchange (NSE) under the ‘Growth Enterprise Market Segment’ (GEMS). This company involves itself in the development and sale of real estate properties.

 HAFR started as an investment club in July 2008 and has grown to become a publicly-traded company worth over US$100 million as of 15 July 2013 when it listed on the NSE.

Some of its notable developments include Morningside Office Park in Nairobi; Migaa, a live-in-golf community in Kiambu County; Suburban, Lakeview Heights Development in Kisumu County; Llango in Kwale County; and Kikwetu in Machakos County, Mitini Scapes Development Limited.

The company is ideal for any investor who would want to venture into real estate.

 5) Olympia Capital

Formerly known as Dunlop Kenya Limited (DKL), it was started as a branch office of Dunlop UK. It set up shop in 1968 and it was involved in the manufacture of vinyl floor tiles, adhesives, and sports equipment. 

In 1970, it was registered as a company, and 6 years later in 1976, it was listed on the Nairobi Stock Exchange. 

Other than Nairobi, the company is also listed on the Botswana Stock Exchange under Olympia Capital Corporation.

Its main investments in Olympia Capital are companies in the manufacture and sale of products used in the construction industry. These include things like floor tiles, adhesives, PVC, windows, door frames, cleaning chemicals as well as fire equipment, and water pumps.

As of financial year ended February 2019, Olympia Capital Holdings posted a Sh5.74 million net profit.

Take home

Investment companies in Kenya are solid companies that keep growing in leaps and bounds. They have invested in diverse economic sectors which makes them a low risk of investing in. Consequently, they are a good investment vehicle for anyone looking to grow their wealth.

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About Author

Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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