Safaricom falls below IPO level

Safaricom, which rose to a high of KShs8.15 on the first day of trading declined last week to an all time low of KShs4.95, KShs5 cents below the IPO.

It is estimated that Kenyan Banks lent out about KShs48 billion to finance the purchase of Safaricom. Although the shares are now very attractively priced, that means there are still a lot of leveraged and unsophisticated holders of the shares.