The Competition Authority of Kenya (CAK) has given the nod to the acquisition of Monarch Insurance by a consortium of three firms, marking a significant shift in the ownership structure of the insurance provider.

The transaction sees Ondoba Limited, Kenyoro Limited, and Equico Thirteen Limited collectively acquire a 51 per cent stake in Monarch Insurance.

This majority shareholding transfers control to the trio, which intends to inject fresh capital and strategic direction into the underwriter’s operations.

Ondoba Limited, a firm specifically established for this transaction, is poised to make its mark in the financial sector. Kenyoro Limited, another player in the deal, is set to focus on broad investment activities.

Meanwhile, Equico Thirteen Limited, a limited liability company incorporated in Kenya, will be concentrating its investments within the financial services sector, particularly in insurance.

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In a statement, the Competition Authority of Kenya noted, “The Competition Authority of Kenya has approved the proposed acquisition of 51 percent shareholding in Monarch Insurance Company Limited by a consortium of three firms, Ondoba Limited, Kenyoro Limited and Equico Thirteen Limited, unconditionally.”

The approval by CAK brings with it an extension of voting rights for the acquiring firms, positioning them to have a more significant say in the decision-making processes of Monarch Insurance.

Monarch, known for its diverse range of insurance products including general insurance, motor solutions, and life insurance, is expected to benefit from this strategic partnership.

Explaining the rationale behind the acquisition, CAK elaborated, “According to the parties, the rationale for the transaction is business growth and expansion by enhancing operational efficiencies and executing a strategy driven by partnerships from the new shareholders.”

This is not the first time Monarch has attracted substantial investment interest. In July 2021, CAK also unconditionally approved a similar transaction involving the acquisition of a 51 per cent stake in Monarch by Holmarcom Africa Financial Services.

With the latest approval, Monarch Insurance is on a trajectory towards growth, leveraging the synergies and operational expertise brought in by its new shareholders.