Britam, owned by Kenya’s richest investors, plans entry into DRC market

Timilehin Adejumobi -

Key Points:

  • Britam Holdings, backed by Kenyan investors, plans to enter the DRC market via acquisition to expand its pan-African presence.
  • This move aims to diversify revenue sources and mitigate sovereign risks across its eight-country operational footprint in Africa.
  • DRC’s liberalized insurance sector, valued at $300 million in 2023, presents substantial growth prospects for Britam Holdings.

Britam Holdings, a prominent financial services conglomerate partly owned by Kenya’s wealthiest investors, has announced plans to enter the Democratic Republic of Congo (DRC) market through the acquisition of an existing insurer.

This strategic move is part of Britam’s broader pan-African expansion strategy designed to mitigate sovereign risks and diversify its revenue streams.

Britam to expand into DRC, eyes acquisition

The Nairobi Securities Exchange-listed company expects to finalize its entry into the DRC within the next six to eight months. This expansion will increase Britam’s operational footprint to eight countries, adding to its current presence in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.

“We are seriously evaluating the DRC market and anticipate entry within six to eight months. We are open to both acquisition and greenfield investment, though we are currently leaning towards an acquisition,” said Britam Group Executive Tom Gitogo in an interview.

Backed by prominent Kenyan investors

Britam Holdings is supported by notable Kenyan investors, including James Mwangi, Peter Munga, Jimnah Mbaru, Benson Wairegi, and Jane Wanjiru Michuki. The group’s diverse portfolio spans insurance, asset management, banking, and real estate, reinforcing its position as a leading regional financial services provider.

In a recent move to strengthen its financial stability and solvency, Britam injected Ksh660 million ($4.98 million) into its wealth management fund, Britam Wealth Management. This increases Britam’s total cash injection into the fund to Ksh6.9 billion ($53.1 million) as of December 2023.

DRC’s growing insurance market

The DRC, with a population exceeding 150 million, liberalized its insurance sector in 2015 after 50 years of state monopoly under Societe Nationale d’Assurances (SONAS).

The country’s insurance market, valued at approximately Ksh38.75 billion ($300 million) in 2023, is expanding rapidly. The sector includes about seven non-life insurance companies, three life insurers, two reinsurers, and around 30 brokerage firms.