Truely stumped by this one. And some would say why bother with the issue anyway? I need Wazuans help to figure out to what extent the ownership of a listed company determines its outcomes.

1. Does good fortune automatically follow Aga Khan businesses? JUB, TPSEA, NMG, DTK

2. Long ago it always made sense to invest in old foreign owned bluechips? BAMB, EABL, BBK, SCBK, BAT, Safaricom

3. But maximum respect to the denizen of enterpreneur owned companies: ARM, SCAN, CFCStanbic, Access

4. Perhaps safely in the arms of a government led one: KCB, KPLC, MSC, Kengen, NBK, EAPortland, KQ

5. To me there's a crop of firms that emerged from Moi insiders like Merali (Eveready, Sameer), Kirubi (Centum), Biwott (KenolKobil), Kulei (Standard), Kirieini (CMC), Ndegwa (NIC)

6. Lastly but most important, the new kids on the block, scorned by old establishment, with the numerous intertwined interlinked companies: EQTY, TCL, HFCK, EACables, Britak

7. Or a neutral one where no one really reigns supreme? Carbacid, COOP, Uchumi


Perhaps your history doesn't matter, it all boils down to whether the firm has transitioned and where it is now heading to.

Would really love to hear your sentiments Investors.

It only matters to the extent that the shareholders are willing to interfere in the running of the business. Back in the days it was safe to invest in foreign owned blue-chips it was always a safe bet. The government led firms were always the one prone to manipulation, KCB used to have a large bad debt from politicians, NBK almost experienced a run by depositors in the late 90s. The neutral ones which lack an anchor shareholder run the risk of hostile takeover CMC and uchumi with good and bad results. for me it always boils down to the dynamics of history and the management of a company in kenya management serves the interest of the shareholders not necessarily that of the company

Add some others!

I am avoiding TCL until 2013 [to get a better sense of ownership's respect on Minorities], EACables falls in the same category now...

Of course, there is Olympia!

Just thought to add:

In Japan - a study of foreign takeovers shows no correlation between firm profitability and local/foreign ownership

In Nordic countries - foreign owned multinations generally outperformed by local multinationals in R&D, innovation

In Germany and UK - absence of a strong share block holder seems to have no effect on the long-run performance of business

In US - acquisition of their firms results in lower sales and employment with rising profitability

In India - Performance of domestic banks has not yet reached the level of foreign banks in terms of both cost and revenue efficiencies. But the foreign banks contribute little in extending services to rural areas.


Recent study in Kenya
In 2009, by Vincent Ongore, Ownership Concentration and Government Ownership have significant negative relationships with firm performance.

On the other hand, significant positive relationships with firm performance, related to:
1. Foreign ownership
2. Diffuse ownership
3. Corporation ownership
4. Manager ownership

http://www.primejournal.org/BAM...11/feb/Vincent%20pdf.pdf

@Nyangande. How is KCB 'goverment led'?? Please get ua facts right.