Mudavadi-linked firm set to pay Ksh3.8B to acquire Absa stakes in two insurers
A little over a decade after selling a controlling stake in First Assurance to Barclays Africa, a group of investors linked to Prime Cabinet Secretary Musalia Mudavadi is now poised to take the insurance company back from Absa in a transaction that could be worth at least Ksh3.8 billion. The proposed deal creates a striking […]
A group of investors linked to Prime Cabinet Secretary Musalia Mudavadi is set to acquire stakes in two Kenyan insurers from Absa in a deal that could be worth Ksh3.8 billion. First Assurance Investments Limited, an investment vehicle associated with Mudavadi, currently holds a 52.5% stake in First Assurance Company Limited and Absa Life Assurance Kenya, while Exclusive Holding Limited owns the remaining 47.5%.
The potential acquisition takes the ownership history of First Assurance, Kenya's oldest insurance company, to a point where investors who sold their controlling stake to Barclays Africa in 2015 are now seeking to regain control from Absa Group. First Assurance was first established in 1930 and became fully Kenyan-owned in 1991.
In 2015, Barclays Africa Group Limited acquired a 63.3% controlling stake in First Assurance for approximately Ksh2.2 billion. The transaction was a significant shift in ownership, as Mudavadi and other investors had previously sold their controlling stake to Barclays Africa. However, 11 years later, the same ownership network is now attempting to buy the stake back from Absa.
The proposed transaction involves a significant corporate homecoming for First Assurance, which has built a broad insurance business in Kenya since its inception in 1930.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
