Aberdare Safari Hotels Limited, which owns the famous Treetops Lodge and Outspan Hotel on the slopes of Mount Kenya, is planning to buy back shares worth Sh254.4 million following approval from its shareholders.
A share buyback occurs when a company retakes its stake from the marketplace with the effect being lowering the number of outstanding shares in the market, which increases ownership stake.
This potentially increases the value of remaining shares signalling confidence in the company's prospects.
Firms may choose to repurchase shares to return value to shareholders, increase their stake, or boost their price.
Aberdare Safari Hotels Limited’s share buyback plan was approved during a virtual special general meeting held on June 5, 2025, and would run for 18 months to December 2026.
“The members authorised the company to purchase using surplus capital two million five hundred forty-four thousand and eight hundred (2,544,800) ordinary shares from members at a consideration of the permissible capital of Kenya shilling two hundred fifty-four million four hundred and eighty thousand (Sh254,480,000) only,” the firm said in a notice published in the Kenya gazette.
“The members renewed the resolutions made on January 9, 2025, authorising shares buyback to be carried out within a period of eighteen (18) months from the date of the resolution,” the notice further stated.
The shares buy-back plan comes barely months after the sale of a Sh254.48 million combined stake in the company by two prominent families, including that of former Tetu MP James Ndung'u Gethenji and veteran businessman and administrator in the Jomo Kenyatta era James Waibochi.
The shares sale followed an annual general meeting of Aberdare Safari Hotels Limited on January 9, 2025, which resolved that the company purchase 1,272,400 ordinary shares from Wagema Limited and Wain Limited each, and at a consideration of Sh127,240,000 apiece.
The transaction meant that Wagema Limited and Wain Limited jointly relinquished 2,544,800 shares in Aberdare Safari Hotels Limited which had a total of 3,370,064 shares and now only retain 412,631 shares each.
Records at the Company Registry show that shareholders of Wagema Limited as of February 10, 2025, included James Ndung'u Gethenji, Robert Marekia Gethenji, Fredrick Gitahi Gethenji, and Hildah Wangari Gethenji. The Gathenjis each held 125 ordinary shares in Wagema Limited.
The records also showed that Wain Limited shareholders included businessman James Waibochi, Catherine Wanjiku Waibochi, John Muraguri Waibochi, Kenneth Rukwaro Waibochi, and Winnifred Wambui Waibochi. The Waibochis each held 1,000 ordinary shares in Wain Limited.
Outspan Hotel, located in Ruring'u, Nyeri county, was built in 1926 and was once the home of the founders of the Scout and Girl Guide movements, Lord and Lady Baden Powell.
The Treetops Lodge, which is located within the Aberdare National Park, is renowned for its links with the late UK’s Queen Elizabeth.
In 1952, Elizabeth II—then Princess Elizabeth—was staying at Treetops Lodge when she received the news of her father’s passing. Queen Elizabeth, who passed away on September 8, 2022, later ascended to the thrones of the UK and the Commonwealth.
The Treetops is currently leased by the two sons of former deputy president Rigathi Gachagua following a deal with the Kenya Wildlife Service.
Mr Gachagua in October 2024 revealed that Crystal Kenya Ltd, the company associated with his children—Keith Gachagua and Kelvin Gachagua took a bank loan to secure the lease.
