Kenya’s Britam Holdings Plans Entry Into DR Congo Market

Britam Holdings, a significant financial services company partially owned by Kenya’s wealthiest investors, has declared plans to join the Democratic Republic of Congo (DRC) market by acquiring an existing insurer.

This strategic move is part of Britam’s overall pan-African expansion strategy, which aims to reduce sovereign risks and diversify revenue streams.

The Nairobi Securities Exchange-listed company intends to complete its entry into the DRC within the following six to eight months. This expansion will bring Britam’s operational footprint to eight countries, expanding on its current presence in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.

“We are seriously considering entering the DRC market and expect to do so over the next six to eight months. In an interview, Britam Group Executive Tom Gitogo stated that the company is open to both acquisition and greenfield investment, but is currently leaning toward acquisition.

Britam Holdings is backed by prominent Kenyan investors such as James Mwangi, Peter Munga, Jimnah Mbaru, Benson Wairegi, and Jane Wanjiru Michuki. The group’s wide portfolio includes insurance, asset management, banking, and real estate, cementing its position as a top regional financial services provider.

Britam has invested Ksh660 million ($4.98 million) in its wealth management fund, Britam Wealth Management, in an effort to bolster its financial stability and solvency. This brings Britam’s total capital investment into the fund to Ksh6.9 billion ($53.1 million) as of December 2023.

The Democratic Republic of the Congo, which has a population of more than 150 million people, liberalized its insurance market in 2015 after 50 years of state monopoly under Societe Nationale d’Assurances (SONAS).

The country’s insurance business is quickly developing, with a projected value of Ksh38.75 billion ($300 million) by 2023. The sector is made up of seven non-life insurance companies, three life insurers, two reinsurers, and approximately 30 brokerage firms.

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