NAIROBI, Kenya- In a move set to shake up Kenya’s insurance landscape, three companies have received the green light from the Competition Authority of Kenya (CAK) to acquire a 51pc stake in Monarch Insurance.
The consortium, comprising Ondoba Limited, Kenyoro Limited, and Equico Thirteen Limited, will now become the majority owners of the insurer, following an unconditional approval from the competition watchdog.
CAK’s decision comes with the assurance that the transaction poses no threat to competition within the insurance market.
According to a statement from CAK, the deal was approved after careful consideration of its potential impact on the market and public interest, both of which were deemed favorable.
Ondoba Limited, a newly incorporated holding company, was established specifically for investments in the financial sector, while Kenyoro Limited and Equico Thirteen Limited are seasoned investors with roots in Kenya’s financial landscape.
This strategic acquisition is expected to bolster Monarch Insurance’s position in the sector, driving growth and expanding its operational efficiencies.
“This approval has been granted on the finding that the transaction is unlikely to negatively impact competition in the market of provision of insurance services, nor elicit negative public interest concerns,” CAK noted in its statement.
This highlights the authority’s confidence in the deal’s potential to enhance, rather than disrupt, the insurance market.
Monarch Insurance, which offers a wide range of general insurance products—including travel, motor vehicle, home, and medical insurance—stands to benefit significantly from this new ownership structure.
The company’s ability to scale and improve its offerings is expected to be strengthened by the fresh capital and expertise brought in by the new investors.
This isn’t the first time Monarch has attracted significant investment. Back in July 2021, CAK also approved a transaction involving the acquisition of a 51pc stake by Holmarcom Africa Financial Services, highlighting the insurer’s ongoing appeal to investors looking to make inroads into Kenya’s insurance sector.
Amid concerns about potential changes, CAK has provided assurances that the transaction will not disrupt the insurer’s operations or affect its employees.
