Absa Group to sell insurance stakes in Kenya

Absa Group has signed a sale and purchase agreement to sell its 63.32% stake in First Assurance Company and Absa Life Assurance Kenya to First Assurance Investments Limited (FAI). The transaction, which is subject to regulatory approval, marks a strategic retreat from direct insurance underwriting as part of a broader restructuring across several African markets, including Botswana, Zambia, and Mozambique.

Under the new arrangement, Absa will transition from owning insurance manufacturing businesses to focusing on the distribution of insurance products. Absa Bank Kenya will maintain its existing bancassurance distribution arrangements with FAI, ensuring that current customer products and services remain unaffected.

This divestment returns control of the businesses to FAI, a long-standing shareholder. While the transaction value has not been disclosed, it unwinds an investment dating back to 2015 when Barclays Africa (now Absa) acquired the controlling stake. Concurrently, Absa is increasing its commitment to the Kenyan banking sector by raising its stake in Absa Bank Kenya from 68.5% to 85% through a separate Sh30.9 billion transaction.