A group of Kenyan investors, in the Nairobi Securities Exchange (NSE), have reportedly lost Sh19.6 billion of their paper wealth since the beginning of the year.
The billionaires are said to have lost their stock holdings through the emerging bear run in the securities market.
The bear market is a market condition where investors anticipate losses but selling continues and pessimism grows.
The top eight losers are;
1. Peter Munga
The Chairman of Equity group had the biggest paper loss with his portfolio at Nairobi Securities Exchange (NSE) shrinking by Sh4 billion since January to close on Sh6.5 Billion on Thursday.
It represents a 38.1 per cent drop, that was driven by a fall in share prices of Equity and Britam, where he is a major investor.
2. James Mwangi
Equity Bank CEO recorded a loss of Sh3.1 billion, leaving his holdings in the lender and Britam at Sh9.1 billion. He holds a 4.88 per cent stake in Equity and a 5.37 per cent interest in the insurer.
3. Pradeep Paunrana
Chief Executive of ARM Cement followed with a Sh2.3 billion loss on his 18.1 stake in the firm. It's current market value is Sh5.3 billion.
4. Jane Michuki
The Nairobi lawyer had a loss of Sh2.1 billion on Britam shares, making hers the fourth-biggest portfolio contraction among the billionaire investors.
She recorded 9.2 per cent stake in the insurer and is now valued at Sh3.2 billion compared to Sh5.3 billion at the beginning of the year.
5. Chris Kirubi
The single-largest shareholder in Centum with 26 per cent stake recorded a paper loss of Sh 1.6 billion. His stake is now valued at Sh9 billion from Sh10.6 billion in January. Mr Kirubi raised his interest in the company from 24.99 per cent in September 2013 with a goal of taking it to 29.9 per cent in the near term. The move contributed to the stock hitting a high of Sh84.5 last year.
6. Benson Wairegi
Chief Executive was sixth with a Sh.2 billion fall in his significant stakes in the insurance firm and Equity Group. Leaving his paper wealth at Sh2.1 billion compared to the Sh3.4 billion in January.
7. Baloobhai Patel
The holder of the most diversified portfolios at the NSE followed with a Sh652.2 million loss to stand at Sh4.2 billion. He took a hit from his interests in Carbacid, Pan Africa Holdings, Barclays Kenya and DTB Kenya whose shares dropped between 14.7 per cent and 26.5 per cent in the same period.
However, his shares Limuru Tea and Bamburi gained 111 per cent and 11.5 per cent respectively.
8. Jane Njuguna
Mr Mwangi's wife followed with a Sh630.4 million paper loss on her Equity shares that are now being valued at Sh2.4 billion, down from Sh3 billion in January.
According to the Business Daily, even though the big investors have recorded major paper losses, they have the financial strength to ride out bear runs.
Small investors have habitually been the victims of bear markets, with some selling when pressed for cash to fund basic consumption or at a loss and out of panic.
