Centum Investment Company is planning strategic exits from some of its portfolio companies to boost its capital base and fund new ventures. This move aligns with the company’s broader strategy to optimize returns for its shareholders and invest in high-growth areas.
Centum’s CEO, James Mworia, highlighted that the company is focusing on divesting from mature investments that have already generated significant returns.
By selling these stakes, Centum aims to free up capital that can be reinvested in more promising sectors such as real estate, financial services, and FMCG (fast-moving consumer goods).
“We are in the process of exiting some of our mature investments. This will enable us to reallocate capital to areas where we see more growth potential and better returns,” Mworia stated.
He added that the company’s decision to sell certain assets is also influenced by the need to maintain a strong balance sheet and ensure liquidity for future opportunities.
One of the notable exits on the horizon is Centum’s stake in the banking sector, where the company has invested heavily over the years. The proceeds from these sales are expected to be substantial, providing a significant boost to Centum’s financial position.
Centum’s strategy is not just about selling assets but also about strategic reinvestment. The company plans to channel the funds into sectors that are poised for rapid growth, including technology, healthcare, and renewable energy.
These sectors are expected to drive economic development in Kenya and offer substantial returns to investors.
Moreover, Centum is committed to supporting the Kenyan government’s Big Four Agenda, which focuses on manufacturing, affordable housing, universal healthcare, and food security.
By aligning its investments with these national priorities, Centum aims to contribute to Kenya’s socio-economic development while ensuring profitable growth for its shareholders.
In conclusion, Centum’s planned exits are a strategic move to enhance its capital base, ensuring that the company remains agile and well-positioned to seize new investment opportunities in high-growth sectors.
This approach not only optimizes returns for shareholders but also supports broader economic development goals in Kenya.
