Centum buyback 10.8mn shares, misses 10pc target amid caution

NAIROBI, Kenya, Apr 10 – Centum Investment Company has repurchased 10.8 million shares under its multi-year buyback programme, falling well below its initial target of acquiring up to 10 percent of its issued share capital.

The Nairobi Securities Exchange-listed firm said the buyback was executed through two programmes launched in February 2023 and October 2024, and concluded at the end of March 2026.

In total, the company acquired 10,839,300 shares—10,688,500 under the first phase and 150,800 in the second—according to a public notice.

“All ordinary shares acquired by the company pursuant to the buyback will be held as treasury shares,” Centum said.

The firm had initially targeted the purchase of up to 65.6 million shares, highlighting a significant gap between planned and actual execution.

Following the exercise, Centum’s total issued shares stand at 644.8 million, down from over 655 million, with the repurchased stock held as treasury shares.

The buyback, approved under Capital Markets Authority regulations, was extended in August 2024 before shareholders approved a second phase during the September 2024 Annual General Meeting.

Share buybacks are typically used to signal confidence in valuation, boost earnings per share, and return excess capital to investors.

However, the modest uptake points to a cautious capital allocation strategy, likely influenced by market conditions, pricing constraints, and alternative investment opportunities within the firm’s portfolio.

Centum said it will file all required statutory returns, marking the close of the capital management programme.