Fahari has a Board of Directors made of three members two of whom are shareholding Directors and one Non Shareholding Director. In addition, there is one robust Board committee, the Strategy and Investment Committee (SIC) which is composed of four members, Two Directors One Non Directors and an Investment Consultant. A co-joint approach has been adopted where there are regular consultations between the SIC and Management in running the affairs of the company. The SIC meets at least once every 3 months.
The company pursues strategies whose objective is to consistently generate above average returns for the shareholders. The need to build a solid balance sheet and consequently solid value for the company share is a key driving factor and therefore emphasis is made in maintaining an optimal asset portfolio mix. Fahari portfolio is in the following main classes:
- real estate
- listed & non-listed equities
- telecommunication implementation
- wholesale & retail trading
This class is the prime focus and comprises of investments in property and related assets. It is particularly attractive in preservation and creation of value. The company is aware of the underlying potential in the real estate sector and is well positioned to derive value from the current and future products in the market. For direct participation, Fahari has gradually built capacity to develop property for resale and/or retention for rent income. This area is will continue to be a significant contributor to the company’s portfolio.
This class comprises shares of companies quoted in the securities markets. Fahari at any one time however invests in shares of a few selected companies which it considers fairly liquid, stable and with potential for growth. This class of assets therefore seeks to preserve value, manage liquidity and also create wealth for shareholders.
The Company’s investment activities focus on specific priority sectors that have been determined to have high potential for growth and the drivers of future economic expansion. They include but are not limited to the following:
1. Land for Resale and/or development
2. Building Construction and Infrastructure
3. Whole sale and Retail Trading
This comprises investment in businesses that are not quoted in the securities markets. They may be start-ups or fairly established enterprises which are considered to have high growth potential and whose value can be unlocked upon listing or through private sale. Other than equity financing, Fahari participates through provision of debt finance or a combination of both equity and debt.
The premise is that Kenya, the region and indeed the Africa’s potential in a wide range of sectors remains largely unexploited while exhibiting strong growth fundamentals and therefore businesses will make good returns on their investments.
Wholesale & Retail Trading
The insurance industry is facing major technology changes that can make the consumer experience more intuitive.