A group of investors connected to Prime Cabinet Secretary Musalia Mudavadi is poised to repurchase a controlling stake in First Assurance, one of Kenya’s oldest insurance firms, currently held by Absa Group.
The deal, valued at approximately Ksh3.8 billion, involves acquiring Absa's 63.3% shareholding in both First Assurance Company Limited and Absa Life Assurance Kenya. This transaction marks a reversal of ownership changes dating back to 2015.
Background of Ownership Changes
First Assurance, originally Prudential Assurance Company PLC established in 1930, became fully Kenyan-owned in 1991 and adopted its current name. In 2015, Barclays Africa Group acquired a 63.3% controlling stake for around Ksh2.2 billion, with Mudavadi and other Kenyan investors selling their shares.
Following Barclays Africa’s rebranding to Absa Group in 2018, First Assurance remained part of the banking conglomerate’s insurance portfolio.
Mudavadi’s Investment Link
During his 2022 vetting as Prime Cabinet Secretary, Mudavadi disclosed ownership of First Assurance shares valued at roughly Ksh440 million, held via two investment vehicles: First Assurance Investments Limited (FAI) and Syndicate Nominees. Syndicate Nominees currently owns 52.5% of FAI, which is leading the buyback effort alongside Exclusive Holding Limited, which holds the remaining 47.5%.
Strategic Implications
For Absa, the sale aligns with a strategy to focus on core banking activities by divesting from insurance operations. Conversely, the Mudavadi-linked investors see the acquisition as reclaiming a significant asset with a long-standing presence in Kenya’s insurance sector.
First Assurance operates a broad portfolio of general insurance products and financial services through branches in Nairobi, Mombasa, Nakuru, Kisumu, Nyeri, and Eldoret.
