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NCBA Strengthens Market Position with AIG Kenya Insurance Buyout.

NCBA Group has announced its acquisition of 100% of AIG Kenya Insurance Company Limited, marking a significant step in its strategy to expand its footprint in the financial services industry.

This move comes after approval by NCBA’s cooperate board to buy the remaining 66.7 per cent of the total shares in a bid to gain full control of the insurer.

NCBA has been a minority stakeholder in AIG Kenya for 18 years, during which it has observed steady revenue growth and robust management practices. The full acquisition is expected to further boost NCBA’s revenue streams from the insurance sector.

AIG Kenya is now part of the NCBA Group, joining six other subsidiaries: NCBA Investment Bank, NCBA Leasing LLP, NCBA Bancassurance Intermediary Ltd, NCBA Bank Uganda, NCBA Bank Tanzania, and NCBA Bank Rwanda.

NCBA, formed from the merger of NIC Group and CBA Group in 2019, is the third-largest banking group in East Africa, serving over 63 million customers across 107 branches. In contrast, AIG Kenya has been operating in Kenya since 1972, offering insurance to corporates, SMEs, and individuals.

Following the acquisition, NCBA will tap into AIG’s customer base and market reputation to offer its financial services to a wider audience and, in turn, provide its customers with more options.

NCBA’s Group Managing Director, John Gachora, expressed confidence in the acquisition, viewing AIG Kenya’s insurance capabilities as a catalyst for revenue growth and deeper market penetration in Kenya and the East Africa region.

“This acquisition will enable our customers to access all their financial products under one roof conveniently. With insurance increasingly becoming a basic financial need for our customers, 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,” Gachora said.

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The acquisition will enable NCBA to integrate AIG Kenya’s insurance products with its banking services, offering customers a seamless experience. This integration is anticipated to drive cross-selling opportunities and enhance customer loyalty.

AIG Kenya CEO Stella Njunge emphasized the importance of increased collaboration between banks and the insurance industry.

“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,” Njunge said.

AIG Kenya, with over 50 years of experience, provides general Insurance Services to a diverse clientele, including multinationals, key enterprises, SMEs, and individuals. This acquisition allows NCBA to leverage AIG Kenya’s established market presence and reputation to enhance its service offerings across East Africa.

AIG Kenya serves customers across the East Africa region. With NCBA operating in Kenya, Uganda, Tanzania, and Rwanda, the acquisition is set to solidify NCBA’s market presence in these countries.

For over 18 years, NCBA held a minority stake in AIG Kenya. This acquisition brings NCBA a well-established insurance business with a strong market reputation, offering advanced general insurance services to corporates, SMEs, and individuals.

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