Centum Investment Company Explained

Centum Investment Company Plc
Type:	Public Limited Company
Traded As:	USE CENT
Foundation:	1967
Location:	Nairobi, Kenya
Key People:	^[1]
Num Employees:	176 (2018)^[2]
Assets:	US$1.002 billion (KES:101.764 billion) (March 2019)
Revenue:	Aftertax:US$10.6 million (KES:4.120 billion) (FY:2018/2019)^[3]
Industry:	Investments
Products:	Private Equity, Real Estate Development, Agribusiness, Publishing, Banking, Power Generation, Beverage Distribution etc

Centum Investment Company Plc, 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: CTUM.^{[4] [5]} The company shares are also cross-listed on the Uganda Securities Exchange (USE), where they trade under the symbol "CENT".^[6] Centum is an investment channel providing investors access to a portfolio of inaccessible, quality, diversified investments.

Centum's mission is to create real, tangible wealth by providing the channel through which investors access and build extraordinary enterprises in Africa. As of March 2019 Centum's total assets were KSh 101,764,000,000 (US$1,002,490,000) with shareholder's equity of KSh51,576,000,000 (US$508,083,000).^[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 2008, the shareholders changed the name of the company to Centum Investment Company Limited.^[7] The shares of Centum Investment Company Limited have been publicly traded on the NSE since 1967 and on the USE since 10 February 2011.^[8] Over time, Centum's strategy has evolved in line with the company's growth with Centum currently in its 2014 – 2019 strategic period dubbed "Centum 3.0".^[9] Under Centum 3.0, the company maintains focus through 4 distinct business lines namely Real Estate, Private Equity, Development and Marketable Securities.^[10]

Investment Overview

Centum's investments are organised into four key verticals:

Real Estate Portfolio

This division is involved in real estate development in Kenya^[11] and Uganda,^[12] with an eye to expanding into other countries in the African Great Lakes region.^[13] These include:^[14]

• Athena Properties Limited – 100 shareholding – A real estate management, ownership, and development company.
• Two Rivers Development Limited – 58.3 percent shareholding – 102-acre development in Kenya's diplomatic blue zone.^[15]
• Vipingo Development – 100 percent shareholding – 10,254-acre^[16] development off the Kenyan coast.^[17]
• Pearl Marina – 100 percent shareholding – 389-acre development located in Ntabo Peninsula, popularly known as Garuga, by the shores of Lake Victoria in Uganda.

Private Equity Portfolio

This division acquires equity positions in either publicly or non-publicly traded companies, mainly in the African Great Lakes region, but increasingly in other parts of the continent as well.^[18] Investments under this segment include the beverage, publishing, financial services and utilities businesses. Per its March 2018 annual report, these included:^[19]

• Nabo Capital – 100 percent shareholding – A fund manager in Kenya.
• Zohari Leasing – 100 percent shareholding – A leasing company in Kenya.

Others

• Isuzu 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.
• Longhorn Publishers – 60.2 percent shareholding – A publishing company listed on the Nairobi Securities Exchange with subsidiaries in Kenya, Uganda, and Tanzania and distribution in Malawi and Rwanda.^{[20] [21]}

Marketable Securities Portfolio

The Marketable Securities Portfolio comprises investments in securities and fixed income instruments managed by Nabo Capital. The portfolio is broadly diversified across various stock exchanges in Africa and primarily invests in large and mid-capitalization equities while maintaining sizeable allocations to fixed income and cash.^[22] This segment represents 8.2% of Centum's portfolio value.^[23]

Development Portfolio

This represents investments, outside from real estate, that are still under development. the development portfolio consists of;

• Greenblade Growers Limited – 100 percent shareholding – A vertically integrated grower, processor and exporter of fresh herbs, vegetables and fruits from Kenya.
• Africa Crest Education Holdings – 16.4 percent shareholding – An investment holding company whose objective is establishing SABIS® operated K-12 schools across the African continent.
• Akiira Geothermal Limited – 37.5 percent shareholding – The first private sector greenfield geothermal development in Sub-Saharan Africa.
• Amu Power Company – 51 percent shareholding – A power generation company.

Former investments

• In 2014, Centum exited two investment funds Helios and Nigeria-based African Capital Alliance where total investments were valued at KShs 500 million.^[24]
• Rift Valley Railways – 10 percent shareholding previously held – A consortium that was established in 2005 to manage the Uganda Railway parastatal railways of Kenya and Uganda. This investment was exited in 2012^[25] to Qalaa Holdings.^[26]
• UAP Holdings – 14 percent 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.^[27]
• Kenya Wine Agencies Limited – 26 percent shareholding previously held – A leading manufacturer, distributor, and importer of wines and spirits in East Africa. This investment exited this investment in 2017 through a direct sale to Distell.^[28]
• Carbacid Investments – 22 percent 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.^[29]
• GenAfrica Asset Managers – 73.4 percent shareholding – The second largest fund manager in Kenya. This investment was exited in 2018.^[30]
• Aon Insurance Brokers – 22 percent shareholding – An insurance brokerage and consulting services company and the Kenyan subsidiary of Aon Plc.This investment was exited in 2016.^[31]
• Platcorp Holdings – Owner of Platinum Credit. 45 percent shareholding. A short term financing company with subsidiaries in Kenya, Uganda, and Tanzania.^[32] This investment was exited in 2018.^[33]
• Almasi Beverages Limited – 53.8 percent shareholding^{[34] [35]} – The second largest Coca-Cola bottling franchise in Kenya.
• Nairobi Bottlers – 27.6 percent shareholding – The largest of the Coca-Cola franchises in Kenya.
• King Beverage Limited – 100 percent shareholding – Sole distributor for Danish beer manufacturer Carlsberg brands and select Edrington Products and Grays spirits in Kenya.^{[36] [37] [38] [39] [40]}
• Sidian Bank – 77 percent shareholding – A commercial bank in Kenya, licensed by the Central Bank of Kenya, the national banking regulator.^{[41] [42] [43]} The bank was sold to Access Bank Group of Nigeria in June 2022, for US$37 million and merged into Access Bank Kenya.^[44]

Ownership

As of 31 March 2022, the company stock was owned by corporate entities and individuals. The ten largest shareholders are listed in the table below:^{[3] [45]}

+ Centum Investment Company Stock Ownership
Rank	Name of Owner	Percentage Ownership
1
2
3	Kimani, John Kibunga
4	Standard Chartered Kenya Nominees NON-RED A/C 9827
5	Standard Chartered Kenya Nominees Limited A/C KE004326
6	Standard Chartered Kenya Nominees Limited A/C KE003534
7	Stanbic Nominees Ltd A/C NR 1031141
8	Uganda Securities Exchange
9	James Mwirigi Mworia
10	CFC Stanbic Nominees Limited A/C NR1031313
11	Others
	Total

See also

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

External links

• Centum Homepage
• Inside Centum’s unique bonus payment scheme As of 29 September 2017.
• Centum Has Firm Grip On Its Growing Investment Bag

Notes and References

1. Web site: 10 February 2016. Centum hires former PwC director as new chief finance officer . 10 February 2016 . Mugambi . Mutegi. Nairobi . Business Daily Africa.
2. Web site: 28 August 2018 . Centum CEO takes pay cut to earn Sh177.5 million . 28 August 2018 . Brian . Ngugi . . Nairobi.
3. Web site: 31 March 2019 . Centum Annual Report and Financial Statements for the Year Ending 31 March 2019 . Centum Investment Company . 10 July 2019 . Centum Investment Company . Nairobi.
4. Web site: Yonga. Romuald. Nairobi Securities Exchange Updates Issuer Codes. 2021-08-27. african markets.
5. Web site: 14 April 2014. Moses. Michira. Kenya: Centum's New Shares Begin Trading. 6 October 2010 . Nairobi. Business Daily Africa via AllAfrica.com.
6. Web site: Listed Equities on Uganda Securities Exchange. Uganda Securities Exchange (USE). 4 August 2017. Kampala. 4 August 2017. https://web.archive.org/web/20170805020002/https://www.use.or.ug/listed-securities. 5 August 2017. dead.
7. Web site: Centum: Our History . Centum Investment Company Limited. 14 April 2014.
8. Web site: Ugandan Exchange Approves Secondary Listing by Centum Investment of Kenya. Bloomberg News. 29 December 2010. 14 May 2014. Fred. Ojambo.
9. Web site: Centum's Strategic Evolvement.
10. Web site: Business Model.
11. Web site: Centum Shares Hit New Highs on Improved Profits, Mega Projects. Thiong'o. Peterson. 14 June 2014. Nairobi. 14 June 2014. The EastAfrican.
12. Web site: Kenya’s Centum to Invest $22 Million in Ugandan Luxury Marina. Ojambo. Fred. 12 April 2013. Bloomberg News. 14 June 2014.
13. Web site: Centum Ventures into High Return Markets. Kamau. Scola. 30 November 2010. Nairobi. 10 February 2016. The EastAfrican.
14. Web site: Centum Investment Company Limited FY18. 31 March 2014. Centum Investment Company Limited. https://web.archive.org/web/20141129113126/http://www.centum.co.ke/documents/Annual_Report_2013_2014.pdf. 29 November 2014. dead. 20 November 2014.
15. News: Two Rivers eyes smart city status with over 10,000 residences.
16. Web site: Vipingo Development Website.
17. Web site: Centum breaks ground for Sh100 billion industrial park.
18. Web site: Private Equity. 20 November 2014. Centum Investment Company Limited (CENTM). CENTM. dead. https://web.archive.org/web/20141018020252/http://www.centum.co.ke/index.php/our-business/private-equity. 18 October 2014.
19. Web site: Centum Annual Report FY18.
20. Book: Longhorn Publishers Annual Report & Financial Statements 2018.
21. Web site: Others Portfolio.
22. Web site: Marketable Securities.
23. Book: Centum Annual Report FY18.
24. Web site: Mutegi . Mugambi . 18 June 2015 . Centum’s profit jumps to Sh7.9bn on sale of UAP . 22 September 2017 . Nairobi . Business Daily Africa.
25. Web site: 21 January 2012 . Centum Exits From RVR . dead . https://web.archive.org/web/20150209143033/http://centum.co.ke/index.php/centum-news/item/19-centum-exits-from-rvr . 9 February 2015 . 2 September 2015 . Centum Investment Company Limited . Nairobi.
26. Investors inject $US 250 million into Rift Valley Railways International Railway Journal May 2010 page 5
27. Web site: Juma . Victor . 27 January 2015 . Old Mutual Raises Stake in UAP After KSh14 Billion Buyout . 27 January 2015 . . Nairobi.
28. News: Centum books gain from KWAL .
29. Web site: RIKE . 11 May 2011 . Centum Confirms Carbacid Share Sale . 12 February 2015 . Rich.co.ke (RIKE) . Nairobi.
30. News: Centum sells stake in asset management firm.
31. News: Centum exits AON.
32. Web site: Mugwe . David . 25 February 2013 . Centum Gets Uganda's Approval on Real Estate Project . 21 June 2015 . Nairobi . The EastAfrican.
33. News: Centum gains Sh1bn from Platinum sale .
34. Web site: Centum Annual Report FY18.
35. Web site: Centum buys majority stake in bottling firm. Juma. Victor. 8 December 2014. 9 December 2014. Business Daily Africa.
36. Web site: Herbling. David. 10 February 2015. Centum Enters Beer Market With Danish Carlsberg Franchise. Nairobi. 10 February 2015. Business Daily Africa.
37. Web site: FMCG Portfolio.
38. Web site: Private Equity Track Record.
39. Web site: History.
40. Web site: Obura. Fredrick. Centum investment sells all shares in King Beverage. 2021-08-27. The Standard.
41. Web site: Central Bank of Kenya: Commercial Banks & Mortgage Finance Institutions . dead . https://web.archive.org/web/20140701161422/https://centralbank.go.ke/index.php/bank-supervision/commercial-banks-mortgage-finance-institutions . 1 July 2014 . 31 July 2014 . Central Bank of Kenya (CBK).
42. Web site: Mwaniki . Charles . 20 May 2015 . Centum To Inject KSh1.2 Billion Bond Proceeds into K-Rep Bank . 21 May 2015 . Nairobi . Business Daily Africa.
43. Web site: Financial Services Portfolio .
44. Web site: Otiato Guguyu . 8 June 2022 . Centum sells Sidian Bank for Sh4.3bn to Nigerian lender . 8 June 2022 . . Nairobi, Kenya.
45. Web site: Centum Integrated Report and Financial Statement FY2022 . live . https://web.archive.org/web/20221205155345/https://centum.co.ke/images/docs/Centum_Integrated_Report_and_Financial_Statement_FY2022.pdf . 5 December 2022 . 18 June 2023 . Centum Investment Company Limited.