Absa Exits Kenyan Insurance Manufacturing Business in Stake Sale Deal

Absa Group has agreed to sell its majority stake in two Kenyan insurance businesses. The transaction will see First Assurance Investments acquire full ownership of the firms, subject to regulatory approvals. The move is part of Absa’s broader strategy of exiting insurance manufacturing operations.

Absa Group announced that it has signed a sale and purchase agreement with First Assurance Investments Limited (FAI). The deal involves the sale of Absa’s entire shareholding in First Assurance Company Limited (FAC) and Absa Life Assurance Kenya Limited (ALAK).

The transaction covers Absa’s 63.32 percent stake in each of the two insurance companies. Once completed, FAI will acquire 100 percent ownership of First Assurance Holdings Limited.

The sale follows a similar restructuring strategy undertaken by Absa in other African markets. The group noted that the latest move comes after the disposal of its insurance manufacturing entities in Botswana, Mozambique and Zambia in 2025. The transaction remains subject to approval by regulators and the fulfilment of other conditions.

“The transaction is subject to all required regulatory approvals and other conditions precedent, as is customary for a transaction of this nature,” the notice stated.

Absa also sought to reassure customers and business partners that operations would continue without interruption.

The group further confirmed that existing business arrangements with Absa Bank Kenya PLC will remain in place after the acquisition. This is expected to ensure continuity in the distribution of insurance products.

Customers were also assured that the ownership changes would not affect the services they currently receive.

“Customer products and services are not affected by this transaction,” the notice stated.

Absa said additional updates will be provided as the transaction progresses and when any significant developments arise. Absa reassured customers that this will be made in accordance with regulatory requirements as and when there are any material developments.

The acquisition marks another step in Absa’s ongoing portfolio restructuring strategy. It also positions First Assurance Investments to take full control of the Kenyan insurance businesses once all approvals are secured.