ANOTHER FIRST  BY  NCBA GROUP AS IT FULLY ACQUIRES AIG KENYA

Customers are  now able to conveniently  access  an array of innovative  financial products under one  roof

By George Gichuki

What stands out :

. Acquisition will solidify the visibility of  NCBA’s  brand

 . AIG Kenya will leverage NCBA’s resources, expertise, expansive network as well as products and services

. NCBA will tap into Kenya’s insurance with a value of Kshs. 309 billion

In a  bold and strategic move that strengthens its presence in the financial  industry, NCBA Group  has  now   fully acquired AIG Kenya Insurance company. This development   marks a significant milestone, as NCBA Group was previously a minority shareholder in AIG Kenya for over eighteen years.

AIG Kenya, known for offering innovative general insurance products to corporates, small and medium enterprises (SMEs), and individuals, is now a member  of  the   NCBA stable. This acquisition adds to NCBA’s ecosystem, which includes NCBA Investment Bank, NCBA Leasing LLP, NCBA Bancassurance Intermediary , NCBA Bank Uganda, NCBA Bank Tanzania, and NCBA Bank Rwanda.

Strengthening customer offerings

Mr. John Gachora, NCBA’s Group Managing Director, was  confident  that  the  acquisition  will  solidify  the market  presence  and  visibility  of  the NCBA  brand  stating :  “We are excited to welcome AIG Kenya to the NCBA family, and this acquisition will enable our customers to conveniently access all their financial products under one roof.” He further emphasized  : “With insurance increasingly becoming a basic financial need for the type of customers we serve, an ecosystem of NCBA’s physical and digital distribution platforms and AIG Kenya’s insurance capabilities will unlock opportunities to catalyze deeper insurance market penetration in Kenya and the East Africa region.”

Value for customers

The insurance  industry     in Kenya and  regionally   is  characterized  by  cut-throat    competition. This acquisition is therefore   expected to enhance AIG Kenya’s  visibility. In  that respect,  Stella Njunge, the chief executive  officer   of AIG Kenya noted :  “The acquisition marks a significant milestone in our company’s evolution. NCBA’s resources, expertise, and expansive network will enhance our capabilities, allowing us to offer a broader range of products and services, improve our operational efficiencies, and provide greater value to our customers and partners.”

With this acquisition, NCBA Group is set to tap into Kenya’s lucrative insurance industry, valued at Kshs. 309 billion. Despite the economic challenges that are currently  prevailing   in the country, the industry continues to register a compound annual growth rate of 10%.

By  and  large,  this   strategic move  places  NCBA  at  a  vantage   point  of   expanding   its footprint in the insurance  industry   and strengthening    its financial services offerings across the East African region.