Kenya’s Competition Authority Approves Tamini Insurance’s 65% Acquisition of Takaful Insurance
CAK Greenlights Major Insurance Sector Merger
The Competition Authority of Kenya (CAK) has given its approval for Tamini Insurance S.A., a Djibouti-based private limited liability company, to acquire a 65% stake in Takaful Insurance of Africa Limited’s issued share capital.
No Negative Impact on Market Competition
In its official notice, CAK stated that the acquisition is unlikely to negatively affect competition in Kenya’s general insurance services market. The authority confirmed the transaction qualifies as a merger under sections 2 and 41 of Kenya’s Competition Act Cap 504.
“The proposed transaction involves the acquisition of 65% of the issued share capital in Takaful Insurance of Africa Limited by Tamini Insurance S.A.,” CAK explained in its statement.
Understanding Kenya’s Merger Regulations
Kenya’s Competition Act defines a merger or takeover as occurring when an entity gains direct or indirect control over another business within the country. This can happen through various means including:
- Purchase or lease of shares
- Exchange of shares
- Vertical integration
Kenya’s Insurance Landscape
As of 2023, Kenya’s Insurance Regulatory Authority (IRA) had registered 61 insurance and reinsurance companies, including:
- 32 general insurance underwriters
- 20 long-term insurance providers
Notable licensed insurers in Kenya include AAR Insurance, AMACO, AIG Kenya, APA Insurance, Britam, Cannon General Insurance, CIC General Insurance, and Corporate Insurance Company.