My 2 cents wrote:This monkey company!
So much cash and liquid assets and absolutely no imagination on how to leverage this to increase value. They should have bought the Coke building for instance, that was such a fantastic deal for Jubilee. They should at least increase their exposure to cheap blue chip equities.
Instead they are all in cash and government securities.
And they have been bleeding market share for a couple of years now.
Last I checked it was down to 16% (even with the mandatory 20% mandate that Kenyan insurers get re-insured by them). Meanwhile in their non-Kenyan markets several countries establishing local re-insurers that will take even more of their business.
This is a great candidate for government divesture. Should come down from the current 60% to say 30%. Then it stands a chance. Otherwise it will remain a rich monkey whose true value will forever remain unlocked.
1) Needs GoK to reduce its stake below a strategic investor eg Safaricom as an example
2) Fire most of the board and management
3) Stop writing poor business. I feel there is something shady about the brokers they use. Very high commissions and loss-making business.
4) Stop any plans to add more real estate esp by building another office building. This will be riddled with corruption. Yields are low given the empty office/commercial space in Upper Hill. Perhaps residential but not if KenyaRe is running the show. At best a JV with a solid developer.
5) Buy cheap stocks. SCBK, ABSA, BAT etc have dividend yields of 9%+ with potential growth vs 8% or lower real estate yields.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett