By Andrew Kariuki

Sameer Africa Plc is nearing completion of a KSh919.70 million land sale that is set to convert long-held balance sheet value into cash for the first time in years.

The transaction involves 3.75 acres of undeveloped leasehold land along Mombasa Road, currently reflected in the company’s books at just KSh15,000, but under contract for US$7.13 million (Ksh919.70 million).

Initially initiated in 2022, the deal faced delays linked to Kenya’s transition to the Ardhisasa digital land system but is now expected to close in the second quarter of 2026, with key documentation secured and a deposit already received.

The sale represents a significant financial shift for Sameer Africa, whose market capitalisation stands at approximately KSh4.50 billion following a sharp rally in its share price over the past year.

Proceeds from the transaction are expected to exceed three times the company’s FY2025 net profit of KSh274.28 million and fully eliminate its retained earnings deficit of KSh206.72 million. This would, for the first time since 2014, create room for dividend distribution, as required under the Companies Act.

Beyond the immediate cash impact, the transaction highlights a wider disconnect between Sameer Africa’s book values and the underlying market value of its assets.

The company currently carries its entire investment property portfolio at Ksh932.79 million under a cost model. However, an independent valuation by Knight Frank places the portfolio’s fair value at approximately Ksh9.19 billion, implying unrealised gains of over KSh8 billion that are not reflected in its financial statements.

This valuation has steadily increased in recent years, rising from Ksh7.58 billion in 2022 to KSh9.19 billion in FY2025, without passing through the income statement.

The company’s financial position has also strengthened following its exit from manufacturing operations. Sameer Africa has cleared all borrowings, including KSh540.69 million in related-party debt in FY2024, and now holds KSh173.14 million in cash and bank balances.

Its assets-to-liabilities ratio stands at 2.42x, while total equity has recovered significantly from KSh69.11 million in 2019 to KSh1.01 billion in FY2025, driven entirely by retained earnings.

The firm’s property portfolio continues to generate steady rental income from over 40 tenants. Disclosures show that Sasini Avocado EPZ paid KSh10.61 million in rent during the year at Sameer Industrial Park, located along Mombasa Road.

However, some risks remain, particularly in receivables. Past-due trade receivables nearly doubled to KSh127.15 million, with amounts overdue beyond 91 days rising sharply, prompting an increase in the loss allowance to KSh22.01 million.

The land parcel being sold represents less than 5% of the company’s estimated 85-acre land bank in Embakasi, Nairobi.

With the expected inflow of KSh919.70 million, the transaction is set to visibly bridge the gap between Sameer Africa’s recorded book value and the actual market worth of its assets, marking a significant turning point in the company’s financial trajectory.