Kenyan billionaire Ndegwa family expands empire as NCBA, ICEA Lion pursue new deals

The Ndegwa family, one of Kenya’s richest families, is set to fortify their foothold in the Kenyan business landscape as two of their major investments, ICEA Lion Group and NCBA Group, embark on an ambitious phase of expansion. This strategic move consolidates the family’s influence in the Kenyan financial services industry.

NCBA Group, a financial services group with ties to some of Kenya’s richest families, including the Ndegwa, Kenyatta, and Merali families, recently unveiled plans to acquire an additional 66.67 percent stake in AIG Kenya Insurance Company, a subsidiary of the U.S.-based finance and insurance giant American Insurance Group (AIG).

The Ndegwa family’s influence in the financial industry will be further augmented by their move to acquire retail investors’ shares in the ILAM Fahari I-Reit, a property fund.

The family intends to execute this buyout, valued at Ksh402.4 million ($2.77 million), through their asset management firm, ICEA Lion Asset Management.

These acquisitions represent the latest strategic maneuvers within the Ndegwa family’s diversified portfolio, spanning manufacturing, real estate, logistics, insurance, and banking.

In recent years, their strategy has included divesting from underperforming assets and pursuing mergers and acquisitions in high-growth sectors.

ILAM Fahari I-Reit’s management underscored that the partial buyout aims to streamline ownership, fostering greater involvement by high-net-worth individuals and institutions. This is anticipated to provide robust support for the fund’s expansion initiatives.

In 2021, ICEA Lion Asset Management secured a minority stake of 2.7 percent by acquiring five million Fahari shares. Should the current buyout offer succeed, their ownership will surge to 22.9 percent.

The Ndegwa family’s latest endeavors build upon their previous strategic investments in the Kenyan financial sector. Their substantial investment in NCBA Group, one of Kenya’s leading financial services providers, reflects their commitment to the country’s financial services sector.

Notably, their investment vehicle, First Chartered Securities, recently acquired 8.25 million NCBA Group shares for Ksh315.6 million ($2.2 million), following their purchase of 31.6 million shares valued at Ksh1 billion ($7.2 million), establishing them as the top shareholder in NCBA Group.

These developments underscore the Ndegwa family’s resolve to strengthen their influence in Kenya’s dynamic financial services sector, further solidifying their position as key players in the nation’s economic landscape.