Backed by Kenya’s richest families, NCBA acquires AIG Kenya to strengthen financial services in $2.21-billion industry

Oluwatosin Racheal Alabi -

Key points:

  • NCBA Bank Kenya has announced its complete acquisition of AIG Kenya Insurance Company Limited, boosting its position in the financial services industry.
  • AIG Kenya, established in 1972, serves a diverse range of clients, including multinationals and SMEs, with branches in Nairobi and Mombasa.
  • The acquisition is expected to enhance NCBA’s capabilities and market reach, improving operational efficiencies and customer value.

NCBA Bank Kenya, a subsidiary of the NCBA Group, a leading financial services conglomerate controlled by some of Kenya’s wealthiest families, has announced its complete acquisition of AIG Kenya Insurance Company Limited (AIG Kenya).

NCBA’s acquisition of AIG Kenya enhances its position in the financial services industry, building on its 18-year minority stake in the company.

AIG Kenya’s background

Established in 1972, AIG Kenya provides general insurance services, It operates branches in Nairobi and Mombasa, with satellite offices in the central business district. Its clientele includes multinationals, top Kenyan businesses, SMEs, and individuals.

John Gachora, NCBA’s group managing director, expressed excitement about the acquisition. He emphasized that integrating NCBA’s distribution platforms with AIG Kenya’s insurance capabilities would boost insurance market reach in Kenya and the East Africa region.

“Welcoming AIG Kenya to the NCBA family will allow our customers to access all their financial products under one roof conveniently,” he said.

Leadership reactions and goals

Stella Njunge, CEO of AIG Kenya, spoke on the importance of the acquisition, she believes that this decision will enhance operational efficiencies and provide greater value to customers and partners

“NCBA’s resources and expansive network will improve our capabilities, allowing us to offer a broader range of products and services,” she said.

With the acquisition, NCBA is set to tap into Kenya’s sizable insurance industry, valued at Ksh. 309 billion ($2.21 billion), and growing at a CAGR of 10 percent.

NCBA Group is a leading banking conglomerate with over 100 branches across Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast. Its subsidiaries include NCBA Investment Bank, NCBA Leasing LLP, and NCBA Bancassurance Intermediary Ltd, among others.

Founded in 2019 through the merger of NIC Bank Group and Commercial Bank of Africa Group, NCBA Group has become a major player in East Africa’s financial sector. Partially owned by prominent Kenyan families such as the Kenyattas, Meralis, and Ndegwas, the conglomerate is committed to strengthening its Kenyan operations while expanding regionally.

This acquisition aligns with NCBA’s strategy to strengthen its financial services offerings and expand its footprint in the East African market. NCBA continues its tradition of fostering regional economic development.