NCBA Group, Kenya’s fourth-largest bank by market capitalization, has acquired insurer AIG Kenya from American International Group Inc. The bank, which previously held a minority stake in AIG Kenya for 18 years, has now secured a 66.67% majority ownership, marking a strategic move to strengthen its foothold in Kenya’s insurance market.
The acquisition, finalized for an undisclosed sum, positions NCBA Group to enhance its service offerings and expand into a full-service “universal bank” model, as stated by Managing Director John Gachora. AIG Kenya currently commands a 2.14% share of Kenya’s insurance market.
NCBA Group aims to capitalize on the acquisition to capture a larger portion of Kenya’s $2.3 billion insurance industry, leveraging its combined physical and digital distribution platforms with AIG Kenya’s insurance expertise. This strategic alignment is part of a broader trend among Kenyan banks, including Equity Group, which recently ventured into general and health insurance following a successful entry into life insurance in 2022.
Gachora emphasized the importance of insurance as a fundamental financial service, especially in increasing market penetration in Kenya and across East Africa. Kenya’s insurance penetration, currently at 3%, ranks fourth highest in Africa after South Africa, Namibia, and Morocco.
The acquisition underscores NCBA Group’s commitment to driving financial inclusion and expanding its service offerings to meet evolving customer needs in the region.
