A story appearing on Business Daily today suggested that ” Kirubi causes a stir with purchase of 2m KQ shares. The story alluded to August regulatory filings at the Nairobi Securities Exchange which indicated that the billionaire bought 2.1 million shares of loss-making Kenya Airways.
It will be remembered that the company recorded a sh25.7 billion loss last year, a first in the republic of Kenya.
However what should not escape Kenyans is how the billionaire was moving across media houses calling on everyone to show patriotism and help revive the company. But a keen observer knows that the shrewd businessman would buy the shares when they are low then will sell them later.
The reason why Chris Kirubi bought the shares include;
- He knows the government will support the company. As a businessman he is aware that the government cannot let Kenya Airways go under without supporting it due to its strategic importance to trade, regional integration and international relations. So far, the government has said it will offer surety for any bailout, expected to be in excess of sh60 billion. This is a shift from the previous position where it was expected to bail out the airline.
- The businessman can also influence the government to assist. This is because he is close to the President and will do what it takes to safeguard his investment.
- Buying the shares will show support from key business community in the country. As a result, other investors will come on board, especially foreign investors and this will boost the company and in time, restore it back to profitability.
Kirubi has argued that him buying the shares is a show of patriotism. Further from the truth, he is putting his money where he knows he will reap in due time.