Absa Sells Controlling Stakes in Kenyan Insurers to Mudavadi-Linked Firm in Africa Retreat

Absa Group Ltd. agreed to sell its entire 63.32% stakes in First Assurance Co. and Absa Life Assurance Kenya Ltd. to First Assurance Investments Ltd., an existing shareholder, as the South African lender continues its exit from direct insurance underwriting across the continent.

The Johannesburg based bank signed a sale and purchase agreement with First Assurance Investments, according to a statement released Thursday. The transaction, which remains subject to regulatory approvals and other customary conditions, will transfer full ownership of both Kenyan insurers to the buyer. Absa did not disclose the purchase price or expected closing timeline. Local media, citing sources familiar with the matter, put the combined value at about 3.8 billion Kenyan shillings ($29 million).

The deal reverses a 2015 acquisition by Barclays Africa — Absa’s predecessor — which paid roughly 2.9 billion shillings for the controlling stake in First Assurance, including a capital injection. In 2019, regulators approved the separation of the life insurance portfolio into what became Absa Life Assurance Kenya.

First Assurance Investments is already a minority holder in the businesses. Public records show it is 52.5% owned by Syndicate Nominees Ltd., a company that Kenya’s Prime Cabinet Secretary Musalia Mudavadi declared as an interest during his 2022 parliamentary vetting. Exclusive Holding Ltd. holds the remaining 47.5%.

Absa said existing distribution arrangements with Absa Bank Kenya Plc will continue, allowing the lender to retain its bancassurance channel and fee income without carrying underwriting risk. Customer products and services will remain unaffected, the group said.

The Kenyan disposal follows Absa’s 2025 sales of insurance manufacturing operations in Botswana, Mozambique and Zambia. The group has been shifting away from owning underwriters in several African markets while focusing on banking and distribution.

Absa previously took a 219.5 million shilling goodwill impairment on the First Assurance investment in 2022 after returns fell short of expectations. Absa Life generated 2.97 billion shillings in gross premium income in the first quarter of 2025, representing about 5.6% of Kenya’s long-term insurance market, according to data from the Insurance Regulatory Authority cited in earlier reports.