The family of the late former Central Bank of Kenya governor Philip Ndegwa will buy back a 24.1 percent stake in ICEA Lion Insurance Holdings, regaining sole ownership of the company in a deal worth Sh8.5 billion. First Chartered Securities, the investment firm controlled by the Ndegwa family, received approval from the Competition Authority of Kenya to acquire the stake it sold to Prudential-backed LeapFrog Investments in 2021 for Sh2.4 billion.
The acquisition is in line with LeapFrog Investments' strategy of staying in a business for five to seven years, with an average holding period of about 6.5 years. LeapFrog Strategic Africa sale is part of this strategy, where it invests, grows value, and then exits profitably. The firm had previously bought and sold stakes in insurers, including Apollo Investments Limited, the parent company of APA Life and APA General Insurance.
Completion of the deal will give First Chartered, which currently holds 75.9 percent in ICEA Lion, full control of the firm that provides life and general insurance as well as asset and fund management through its subsidiaries in Kenya, Uganda, and Tanzania. Mr. James Ndegwa and his brother, Mr. Andrew Ndegwa, serve on the ICEA board, with the former being the chairman. The Competition Authority of Kenya authorised the proposed transaction, stating it was in line with the Competition Act.
The transaction values the stake at more than three times the price paid six years ago, underlining the growth in the value of ICEA Lion during the period. ICEA Lion posted a net profit of Sh1.16 billion in the year ended December 2025, compared with Sh1.34 billion in the previous year and Sh682.52 million in 2020 before Prudential joined. The group has been a consistent dividend payer, giving out Sh600 million in 2025, up 50 percent from Sh400 million in the previous year.
Prudential Financial told investors in an earnings call that the exit from ICEA is part of a broader push to redeploy capital into higher-return opportunities. The firm had exited PGIM Taiwan, its global investment management business, in East Asia during the third quarter of last year. The ICEA Lion deal is consistent with the Ndegwas' wider strategy of reshaping the family's investment portfolio through acquisitions, mergers, and disposals.
The Ndegwas have interests spanning banking, manufacturing, real estate, logistics, and insurance. The family was instrumental in the creation of NCBA Group through the 2020 merger of NIC Group and CBA Group. NCBA recently completed a cash-and-stock acquisition by Nedbank Group, giving the Ndegwas cash and a stake in the South Africa-headquartered group. The family has also disposed of some assets over the years, including the ICEA Building in Nairobi's central business district.
The return of the Ndegwas' investment vehicle to full ownership comes against a backdrop of increased consolidation and foreign investment in Kenya's insurance industry. South Africa's Absa Group agreed to sell its entire 63.32 percent stake in Absa Life Assurance and First Assurance Kenya Limited to First Assurance Investments Limited. The deal represents another sell-back of the stake to original owners, highlighting the ongoing trends in the industry.
Key points
- The Ndegwa family to buy back a 24.1 percent stake in ICEA Lion Insurance Holdings for Sh8.5 billion.
- The deal marks the return of the Ndegwas' investment vehicle to full ownership of ICEA Lion.
- The transaction is in line with LeapFrog Investments' strategy of investing, growing value, and exiting profitably.
