First Assurance Investments Limited (FAI) has completed its acquisition of Absa Group’s entire shareholding in two Kenyan insurance subsidiaries, bringing an end to more than a decade of South African ownership and returning majority control of the century-old insurer to local investors.
The transaction, announced in a public notice dated November 9, 2026, transfers Absa’s 100 percent stake in First Assurance Holdings Limited, the parent company of First Assurance Company Limited and Absa Life Assurance Kenya Limited, to FAI, which was already an existing shareholder. Completion followed the fulfilment of regulatory approvals and other customary conditions.
Following the ownership transition, Absa Life Assurance Kenya will be rebranded as First Assurance Life, while First Assurance Company will operate as First Assurance General.
Both entities will retain the designation “Formerly an Absa Group Company” for six months to maintain continuity with customers and business partners.
The boards of the two insurance companies have assured policyholders that the change in ownership will not affect their services or existing arrangements.
“Existing distribution relationships with Absa Bank Kenya PLC will continue. The transaction also included a supportive, collaborative process to ensure no disruption to the operations of FAC and ALAK. We would like to assure all our customers, policyholders and stakeholders that our products and services are not affected by this transaction,” the notice stated.
FAI is associated with a group of Kenyan investors that includes Prime Cabinet Secretary Musalia Mudavadi and Lamu Governor Issa Timamy, according to earlier regulatory filings and court documents. Business Daily reported in October that the investment vehicle would pay approximately Ksh3 billion for the majority stakes.
The acquisition reverses an investment that began in 2015, when Barclays Africa Group, which was later renamed Absa Group, acquired a 63.32 percent controlling stake in First Assurance in a transaction valued at approximately Ksh2.9 billion.
The deal included Ksh2.2 billion paid to shareholders and a Ksh700 million capital injection. It was part of Barclays Africa’s broader strategy to expand its wealth management, investment management and insurance operations in East Africa.
First Assurance traces its origins to 1930, when it began operating in Kenya as the East African arm of British insurer Prudential. The company became fully Kenyan-owned in 1991 before adopting the First Assurance name.
In 2019, its life insurance portfolio was transferred to a separate entity that subsequently became Absa Life Assurance Kenya, leaving First Assurance focused on general insurance.
Absa’s investment also experienced financial challenges in subsequent years. The group recorded a Ksh219.5 million impairment of acquisition-related goodwill in 2022, according to The Kenyan Wallstreet.
The Kenyan disposal forms part of Absa Group’s wider strategy to withdraw from direct insurance manufacturing across Africa and concentrate on a bancassurance distribution model.
In 2025, the lender completed the sale of its insurance businesses in Botswana, Mozambique and Zambia to Hollard International. The Mozambique transaction closed on April 1, Absa Life Botswana on May 1, and Absa Life Zambia on June 1.
Absa has said its broader strategy is increasingly focused on a distribution-led model, with bancassurance non-interest revenue recording growth during the year.
Separately, the banking group is pursuing a tender offer to increase its shareholding in Absa Bank Kenya from approximately 68.5 percent to about 85 percent, reinforcing its focus on banking operations in the region.
For First Assurance, the completed acquisition marks a return to local majority ownership after more than 11 years under South African control. The company has expressed optimism about its future under the new ownership structure.
It said it “looks forward to an exciting future as we continue to innovate and provide you with cutting-edge financial products and services”.
First Assurance’s history in Kenya spans nearly a century. Established in 1930 as the East African operation of Prudential Assurance Company, it became a wholly Kenyan-owned insurer in 1991.
Its ownership changed in 2015 when Barclays Africa acquired a controlling stake, followed by the restructuring of its operations in 2019 to separate its general and life insurance businesses. The latest transaction effectively reverses the 2015 acquisition, returning control to an investor group with longstanding ties to the insurer.
