Mudavadi-Linked Company Set to Take Over Absa Insurance Firms

A company linked to Prime Cabinet Secretary Musalia Mudavadi is set to acquire Absa Group’s controlling stakes in two Kenyan insurance firms, potentially returning the businesses to investors associated with their historical ownership.

In a notice issued on August 13, 2026, Absa Group Limited said it had entered into a sale and purchase agreement with First Assurance Investments Limited (FAI), an existing shareholder of First Assurance Company Limited (FAC) and Absa Life Assurance Kenya Limited (ALAK), to sell its entire 63.32% stake in each business.

“Absa Group Limited (“Absa”) has entered into a sale and purchase agreement with First Assurance Investments Limited (“FAI”), an existing shareholder of First Assurance Company Limited (“FAC”) and Absa Life Assurance Kenya Limited (“ALAK”) for the sale of Absa’s entire stake in the two businesses, which amounts to 63.32% shareholding in each of the two entities,” Absa said.

Once the transaction receives the required regulatory approvals and satisfies other conditions precedent, FAI will acquire Absa’s 63.32% stake in each insurer, giving it control of the two businesses.

The deal follows Absa’s wider reduction of its direct insurance manufacturing interests across Africa.

In 2025, the group sold its insurance manufacturing entities in Botswana, Mozambique and Zambia.

Mudavadi Connection to the Acquisition

The acquisition has attracted attention because of FAI’s reported links to Mudavadi.

According to corporate registry information cited in reports, Syndicate Nominees owns 52.5% of First Assurance Investments, while Exclusive Holding Limited owns the remaining 47.5%.

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Mudavadi previously disclosed his ownership of Syndicate Nominees during his 2022 vetting for the position of Prime Cabinet Secretary.

The transaction also reverses a major ownership change involving First Assurance in 2015, when Barclays Africa Group acquired a controlling 63.32% stake. Barclays Africa later became part of Absa.

The latest deal could therefore return control of the two insurers to FAI, an existing shareholder linked to the companies’ historical ownership.

What the Deal Means for Customers

Customers of First Assurance and Absa Life can consequently continue using their existing policies and services as the transaction goes through the approval process.

“Customer products and services are not affected by this transaction,” Absa said.

Meanwhile, Absa’s exit from direct ownership will not end the existing distribution relationship between the insurers and Absa Bank Kenya.

The banking group said the parties would work together to maintain smooth operations during the transition.

“The transaction also includes a supportive, collaborative process to ensure no disruption to the operations of FAC and ALAK. Existing distribution relationships with Absa Bank Kenya PLC will continue,” Absa stated.

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Why Absa Is Selling the Insurance Stakes to Mudavadi

The Kenyan transaction follows Absa’s recent development of insurance manufacturing businesses in other African markets.

“This development follows the sale of Absa’s insurance manufacturing entities in Botswana, Mozambique, and Zambia in 2025,” Absa said

The latest deal is therefore consistent with Absa’s move away from direct ownership of insurance manufacturing businesses while maintaining distribution relationships.

Regulatory Approval Still Required

However, FAI cannot complete the acquisition until the transaction secures all required regulatory approvals and satisfies other conditions precedent.

Absa said it will provide updates when significant developments occur.

“Further announcements will be made in accordance with regulatory requirements as and when there are any material developments,” Absa added.

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