Absa gets KSh 3Bn after selling stake in First assurance
Absa Group is selling its 63.32% stake in First Assurance and Absa Life Assurance Kenya for KSh 3 billion. The deal, which involves Kenyan Prime Cabinet Secretary Musalia Mudavadi, is part of Absa's broader strategy to exit the insurance market outside of South Africa.
Why it matters
The transaction marks a significant shift in the regional insurance landscape and highlights the consolidation of financial assets by local investors.
&title=Absa%20Group%20Gets%20KSh3Bn%20After%20Selling%20Stakes%20in%20First%20Assurance%20and%20its%20Life%20Business" rel="nofollow" alt="telegram"> &name=Absa%20Group%20Gets%20KSh3Bn%20After%20Selling%20Stakes%20in%20First%20Assurance%20and%20its%20Life%20Business" rel="nofollow" alt="tumblr"> Prime Cabinet Secretary Musalia Mudavadi Share &media=https://businesstoday.co.ke/wp-content/uploads/2025/10/Musalia-Mudavadi-1-1600x1179.webp" rel="nofollow" alt="pinterest"> &title=Absa%20Group%20Gets%20KSh3Bn%20After%20Selling%20Stakes%20in%20First%20Assurance%20and%20its%20Life%20Business" rel="nofollow" alt="telegram"> &name=Absa%20Group%20Gets%20KSh3Bn%20After%20Selling%20Stakes%20in%20First%20Assurance%20and%20its%20Life%20Business" rel="nofollow" alt="tumblr"> Absa Group will get KSh 3 billion (US$23.2 million) for its 63.32% stakes in First Assurance Co and Absa Life Assurance Kenya. First Assurance Investments Ltd, is majority owned by Kenya’s Prime Cabinet Secretary Musalia Mudavadi.
The price is below the KSh 3.8 billion that Absa Group had been expected to be paid. The deal, announced in August, needs approval from Kenya’s Insurance Regulatory Authority.
The sale returns First Assurance to the Kenyan investors who sold it to Barclays Africa, Absa’s former name, in 2015 for KSh 2.2 billion. The buyers are paying KSh 800 million more to take it back, along with the Absa life business.
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