Nairobi, April 9 -- Centum Investment Company has bought back just 16.76 percent of its targeted shares even after extending the repurchase period, highlighting challenges that arose after the stock price rose above the capped execution price of Sh9.51.

A share buyback occurs when a company repurchases its shares from the marketplace. The effect of a buyback is to reduce the number of outstanding shares on the market, raising the ownership stake of the stakeholders.

Consequently, this reduces the number of outstanding shares, potentially increasing the value of remaining shares and signaling confidence in the company's prospects. Companies may choose to repurchase shares to return value to shareholders, increase their stake in the compa...