Kenyan lender NCBA Group has announced plans for the acquisition of a 100% stake in insurer AIG Kenya Insurance for an undisclosed sum.

The latest development comes after NCBA received approval from its board to begin talks with AIG Group for the proposed takeover.

With a clientele spread across the East Africa region, AIG Kenya serves multinationals, key enterprises in Kenya, and small and middle-sized organisations and individuals. 

The business disposal will take place subject to receipt of necessary approvals from the boards of NCBA, AIG Kenya and AIG Group.

The conclusion of the transaction also requires approvals from respective banking, insurance and regulatory agencies, the company noted.

AIG currently owns majority shares in AIG Kenya while NCBA Bank is a minority stakeholder.

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NCBA Group managing director John Gachora said: “We believe that by bringing together NCBA’s physical and digital distribution platforms and AIG Kenya’s insurance capabilities we will accelerate towards our ambition to become a universal bank that addresses a full set of our customers’ financial needs.

“We have held a minority shareholding in AIG Kenya for over 18 years and have been impressed by the steady revenue growth of the business, the expertise of the management team and the customer-centric spirit that is at the heart of its long-standing customer relationships.”

The proposed acquisition is part of the banking group’s strategy to leverage the expertise of AIG Kenya to further establish itself in the markets it serves.

NCBA provides services for more than 63 million clients across four East African countries: Kenya, Uganda, Tanzania and Rwanda. 

AIG recently appointed Edward Dandridge as its executive vice-president and chief marketing and communications officer.