Pan-African lender NCBA has announced it has acquired 100 percent stake in insurer AIG Kenya, bringing to seven the number of subsidiaries under the Group.

AIG Kenya now joins NCBA Group PLC subsidiaries: NCBA Investment Bank, NCBA Leasing LLP, NCBA Bancassurance Intermediary Ltd, NCBA Bank Uganda, NCBA Bank Tanzania and NCBA Bank Rwanda, as the company firms up its position in the regional financial services industry.

NCBA has held a minority shareholding in AIG Kenya for over 18 years and this strategic move brings into NCBA an over 50-year-old insurance business, with a heralded market reputation for offering general insurance services to corporates, SMEs, and individuals.

 “This acquisition will enable our customers to conveniently access all their financial products under one roof. With insurance increasingly becoming a basic financial need for the type of customers we serve, an ecosystem of NCBA’s physical and digital distribution platforms and AIG Kenya’s insurance capabilities will unlock opportunities to catalyze deeper insurance market penetration in Kenya and the East Africa region,” explained NCBA’s Group Managing Director, John Gachora.  

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Insurance industry in Kenya

With the full acquisition, NCBA is set to tap into a sizeable insurance industry in Kenya valued at Kes309 billion which continues to grow at a CAGR of 10 percent even amidst ongoing macro-economic challenges.

Stella Njunge, CEO of AIG Kenya commented, “The acquisition marks a significant milestone in our company’s evolution. NCBA’s resources, expertise, and expansive network will enhance our capabilities, allowing us to offer a broader range of products and services, improve our operational efficiencies, and provide greater value to our customers and partners.”

Currently, the insurance penetration rate in Kenya remains low at approximately 3 percent due to low uptake of insurance products in the country.

Some of the main players in the industry include Jubilee Insurance, Britam, CIC Insurance Group, UAP Old Mutual Group, AAR Insurance, ICEA Lion, Sanlam Kenya, Kenindia Assurance Company and APA Insurance all offering a mix of services including life, general, health covers as well as investment services.