Absa Group is set to leave the insurance manufacturing business in Kenya after agreeing to sell its controlling stake in two insurance companies to First Assurance Investments Limited (FAI).
The South African banking group has signed a sale and purchase agreement covering its 63.32 per cent shareholding in First Assurance Company Limited (FAC) and Absa Life Assurance Kenya Limited (ALAK).
The transaction is subject to approval from the relevant regulators and the fulfilment of other conditions required before the deal can be completed.
FAI is already a shareholder in the two companies. Once the transaction is approved and completed, it will acquire full ownership of the businesses.
The deal is part of a wider strategy by Absa to reduce its involvement in insurance manufacturing across its African markets. The group has been gradually selling insurance businesses while retaining other ways of serving insurance customers through its banking operations.
Absa said the Kenyan sale follows the disposal of its insurance manufacturing businesses in Botswana, Mozambique and Zambia in 2025.
The move is expected to change the ownership of the two Kenyan businesses but does not mean customers will immediately have to change how they access their insurance services.
What the deal means for customers
Absa said the transaction would be managed in a way that ensures the continued operation of both insurance companies.
“The transaction includes a supportive, collaborative process to ensure no disruption to the operations of FAC and ALAK. Existing distribution relationships with Absa Bank Kenya PLC will continue,” the group said.
This means Absa Bank Kenya will continue distributing insurance products through its existing relationships with the two companies even after the ownership transition is completed.
The bank also assured customers and business partners that existing products and services would remain unchanged during and after the transaction process.
The arrangement allows Absa to step back from owning insurance manufacturing businesses while maintaining a role in insurance distribution through its banking network. For customers, this could mean that the company they interact with for their insurance policy remains connected to Absa Bank even though the ownership structure changes.
First Assurance has operated in Kenya for decades, while Absa Life Assurance Kenya provides life insurance products through a combination of direct and bancassurance channels.
The financial terms of the latest transaction were not disclosed, and Absa did not provide a specific completion date.
The deal will only take effect after the necessary regulatory approvals are obtained and the other agreed conditions are satisfied.
Absa said it would make further announcements if there are any material developments concerning the transaction.
The sale allows FAI to take full control of two established insurance businesses in Kenya, while allowing Absa to continue serving its banking customers through insurance distribution without directly owning the insurance manufacturing operations.
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