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Genghis Capital Faces Financial Headwinds Amid Disputes and Regulatory Scrutiny

Strategic Insights

— 1 min read

Genghis Capital, a Nairobi-based investment bank, has faced significant challenges in the first three months of the year, as its unit trusts have lost a combined Sh628.5 million in assets. The firm's Mali Money Market Fund, which was formed largely by Safaricom's staff, saw its assets under management (AUM) drop by 17% to Sh2.31 billion, while the AUM of Genghis Unit Trust Funds fell by 19% to Sh626.9 million. The issues have been compounded by a dispute with Safaricom, which ditched its partnership with the Mali unit trust scheme to form a new fund, Ziidi, at the end of last year.

Key Takeaways:

  • Genghis Capital's unit trusts, including the Mali Money Market Fund, lost a combined Sh628.5 million in assets from January to March, amid recent headwinds for the firm.
  • The assets under management (AUM) of the Mali money market fund fell by Sh479.2 million, a 17% drop, to Sh2.31 billion.
  • Genghis Unit Trust Funds saw a 19% drop in AUM, falling to Sh626.9 million from Sh776.2 million.
  • Ziidi MMF, approved by the Capital Markets Authority (CMA) on November 27 last year, saw its AUM increase by 331% to Sh7.37 billion from Sh1.71 billion at the end of December.
  • Genghis Capital was involved in a dispute with Safaricom, which abandoned its partnership with the Mali unit trust scheme to form a new fund, Ziidi, at the end of last year.
  • Sources disclosed that top State officials had expressed dissatisfaction with Genghis Capital over alleged links with the family of the late President Daniel arap Moi.
  • The regulator, CMA, directed Genghis Capital to submit a plan detailing how it intends to settle the debt owed to a South African businessman.

Statistics:

  • Sh628.5 million: the combined loss of assets in the first three months of the year for unit trusts controlled by Genghis Capital.
  • 17%: the drop in assets under management (AUM) of the Mali money market fund to Sh2.31 billion.
  • 19%: the drop in AUM of Genghis Unit Trust Funds to Sh626.9 million.
  • 331%: the increase in AUM of Ziidi MMF to Sh7.37 billion.
  • Sh1.71 billion: the AUM of Ziidi MMF at the end of December last year.
  • Sh7.37 billion: the AUM of Ziidi MMF at the end of March.

Sources:

  • Business Daily
  • Capital Markets Authority (CMA)
  • Safaricom
  • Genghis Capital
  • Standard Investment Bank (SIB)
  • ALA Capital limited
  • Sanlam Investments East Africa Limited

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