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CIC Insurance Group (CIC Group), a leading insurance and investment group partly owned by Kenyan tycoon Gideon Muriuki, has resumed interest payments on a Ksh4.5-billion ($33.2 million) loan to Co-operative Bank of Kenya. Gideon Muriuki is also the head of Co-operative Bank of Kenya.
Following the expiration of a repayment deferment granted in response to the COVID-19 pandemic to give it more financial flexibility, CIC Group resumed its interest payments on the five-year loan from Co-operative Bank of Kenya.
Following the end of the moratorium in October 2022, the Nairobi-based insurer made an interest payment of Ksh200 million ($1.47 million) to Co-op Bank.
The loan was originally worth Ksh4.5 billion ($33.2 million) in 2019 and was secured by a 200-acre parcel of land owned by CIC Group in Kiambu County.
The loan was obtained by the insurer to pay off its corporate bond.
As of December 2022, the credit facility’s value remained the same, factoring in accrued interest and repayments made over the years.
CIC Group, a Nairobi-based insurance and investment group with a regional presence in South Sudan, Uganda, and Malawi offers innovative financial services to more than 1 million customers across its network of 25 local branches, more than 1,000 financial advisors, and various online platforms.
Muriuki, the CEO of Co-operative Bank Group, holds the largest individual stake in CIC Group with a 5.27-percent stake, representing a total of 137,824,304 shares.
Despite facing significant challenges in its operating environment, the group delivered a remarkable financial performance, achieving record-breaking profits in the 2022 fiscal year, surpassing $8 million.
The group’s profit for the 2022 fiscal year rose by 63 percent from Ksh668.4 million ($5.1 million) to Ksh1.09 billion ($8.3 million), making it the first time in seven years that the company has reported a profit in excess of $8 million.
