- An investment firm linked to Prime Cabinet Secretary Musalia Mudavadi and Lamu Governor Issa Timamy struck a deal to acquire Absa Group's majority stakes in two Kenyan insurance companies
- First Assurance Investments Limited is set to pay an estimated KSh 3 billion for a 63.3% stake in both Absa Life Assurance and First Assurance Kenya Limited
- The deal marks a buyback of shares that Mudavadi, Timamy and their partners sold to Absa, then known as Barclays Africa, in 2015 for KSh 2.2 billion
An investment company co-owned by Prime Cabinet Secretary Musalia Mudavadi and Lamu Governor Issa Timamy is in advanced talks to reacquire majority stakes in two Kenyan insurance firms from South Africa's Absa Group in a transaction valued at an estimated KSh 3 billion.
Source: Twitter
First Assurance Investments Limited, the vehicle through which the two leaders hold their interests, has reached an agreement with Absa Group to purchase the South African financial group's 63.3% shareholding in both Absa Life Assurance and First Assurance Kenya Limited.
The deal was announced by Absa Group in August 2026 without a disclosed price.
According to a report by the Business Daily, the parties settled on KSh 3 billion, implying a combined valuation of approximately KSh 4.77 billion for the two firms.
The transaction is currently awaiting clearance from the Competition Authority of Kenya before it can be concluded, with both parties targeting completion before the end of the current financial year.
Who Owns First Assurance Investments?
According to public registry records, Exclusive Holding Limited, a firm associated with Governor Timamy, holds a 47.5% stake in First Assurance Investments Limited.
The remaining 52.5% is held through Syndicate Nominees, a company Mudavadi disclosed during his 2022 Cabinet vetting as his own.
Beyond his indirect stake in the acquiring vehicle, Mudavadi also holds a direct 12.35% interest in First Assurance through Syndicate Nominees, giving him a combined effective stake of 21.26% in the insurance business.
Other shareholders in First Assurance include Stephen Githiga, the former chief executive of First Assurance, and Sasini, with 4%, while Chandaria Ventures Limited, associated with Darshan and Neer Chandaria, holds 1.67%.
Epoch Investments Limited, linked to Jambojet chairman Ayisi Makatiani, holds 0.84%, as does Absa Pension Services Limited.
The acquisition completes a full circle for Mudavadi, Timamy and their partners. In 2015, the group sold their stakes to Absa, then operating under the Barclays Africa brand, for KSh 2.2 billion.
First Assurance itself has deep roots in Kenya, having been established in 1930 as Prudential Assurance Company before Kenyan investors acquired the entire business from its UK owners in 1991.
Why Absa Is Exiting Direct Insurance Ownership
Absa Group's decision to sell mirrors a broader strategic pivot the Johannesburg-based lender has been executing across Africa.
The group stated in its 2025 annual report that it had adopted a bancassurance distribution model with key partners across its African operations, effectively choosing to earn commission income from insurance products rather than carrying underwriting risk on its own balance sheet.
Source: TUKO.co.ke