Djibouti-based firm gets nod to acquire majority stake in Takaful Insurance

The Competition Authority of Kenya (CAK) has unconditionally approved Tamini Insurance S.A.’s acquisition of a 65 per cent controlling stake in Takaful Insurance of Africa Limited, concluding the transaction poses no threat to competition or public interest.

In a statement issued yesterday, CAK said it had determined that the merger would not negatively impact Kenya’s general insurance market structure, as Djibouti-based Tamini Insurance’s existing Kenyan operations focus on investment banking and microfinance activities rather than insurance services, meaning the transaction creates no market concentration concerns.

The regulatory approval followed a comprehensive market analysis that evaluated potential impacts on competition and public interest considerations in Kenya’s insurance sector, which comprises 61 registered companies including 32 general insurance underwriters.

CAK emphasised that the merged entity would continue facing robust competition from established players controlling over 99 per cent of the market. The transaction met the threshold for mandatory notification under the Competition Act (Cap 504) as the companies’ combined turnover exceeded the Ksh 1 billion requirement.

Important public interest factors were also considered, including employment implications, with the parties assuring no anticipated job losses would result from the acquisition.

This cross-border transaction represents a significant development in Kenya’s insurance landscape, particularly in the general insurance segment that covers multiple classes including aviation, public liability, engineering, fire, marine, motor, and medical insurance.